We discusses why there really is no time like the present, and you should act now to take advantage of current conditions.
It’s rare for the UK government to give property investors a helping hand. With demand far outstripping supply in London, property prices have accelerated over recent years and the government has been keen to dampen property investor enthusiasm by increasing taxes. But with Brexit stifling confidence, quickly followed by the economic effects of Covid-19, we find ourselves with a rare opportunity to take advantage of subdued prices, and a government keen to get the economy moving again.
Here is why you should act now if you want to jump onto the London property ladder:
Stamp duty holiday until 31st March 2021
The UK government has announced a stamp duty holiday on the first £500,000 of a property purchase until 31st March 2021. This saves property investors up to £15,000.
Stamp duty increase for overseas investors from 1st April 2021
On the 1st April 2021, not only will stamp duty rates return to pre-holiday levels, the UK government is proposing to leverage a further 2% to rates for overseas investors. Assuming you already own a property, your total stamp duty bill for an additional property in the UK worth £500,000 (which buys a two-bedroom apartment in Zone 3 London) will increase from £15,000 to £40,000. If you buy a £1.6 million apartment in Central London, and you already own a property, your total stamp duty bill will rise from £138,750 (SD holiday rate) to £185,750.Buy now before the property market overheats
Buy now before the property market overheats
Just before Covid-19 arrived in the UK, the London property market was beginning to recover from the Brexit downturn. The market was heating up quickly as two years of pent up demand started to unwind. That demand was quickly contained again amid the Covid-19 crisis, but we expect to see a surge in property buying soon – especially with the stamp duty incentive. It’s worth remembering that when the market recovered from the credit crunch, the average London property increased by 10.35% in the first year of recovery (2010). It then rose an average of 7.87% a year after that, until Brexit happened. So, the sooner you buy, the better
Stamp Duty Holiday
until 31st March 2021
first £500,000 of a property purchase saves property investors up to £15,000
increase for overseas investors
from 1st April 2021
Rates return to pre-holiday levels, the UK government is proposing to leverage a further 2% to rates for overseas investors.
There are trusted companies who can do it all for you
It’s a big decision investing in London, and it’s hard to know where to start.
But there are property consultants who can:
Use their expertise and knowledge to find you a property in an area with excellent rental demand and investment potential.
They are usually not tied to one estate agent or builder, which means they can be entirely focused on finding the right property for you. If the sale falls through, they don’t charge you any extra.
They just start the process again on your behalf. they arrange all the finance for you, dealing directly with a mortgage broker to find you the best deal.
You only pay them a deposit until they have successfully bought you a property.
Once the sale is complete, they can manage the property on your behalf at a rate that under-cuts most high street estate agents.
'Ask Me Anything'
Property is a proven solid tangible Investment.
While everyone is now investing in UK property.
Is it GOOD really? Do you have doubts?
We are introducing 10 Days 'Ask Me Anything' Free sessions.
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You are able to ask both OUR UK & HK Experts for 10 Days.
Why you should invest in London property NOW