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Is It Still Worth Investing in Property Since the Increase in Stamp Duty?

People explore whether it is still economically viable to invest in property since the stamp duty increase, and what sort of properties you may invest in to minimise the effect of the increase or completely bypass it altogether. The Impact of the Improve in Stamp Duty The cost of an investment property in Birmingham is £168, 062. 00 which means you may typically have to pay £5903 in stamp duty costs. The Increase in Stamp Duty Has Contributed to accommodate Price Slump One of the main issues that the increase has caused, has been the increased cost in acquiring innovative property, which has subsequently caused a slump in house price inflation. Whilst this now means it is a superior time for potential investors to consider purchasing additional properties, those who already own property will probably be disappointed along with the growth in the market. In particular, property prices in London are most affected by the increase simply because house charge are generally more expensive so the stamp duty levied on the properties is proportionately higher. This means that either demand may well go down due to the high prices, or property prices may decrease to make up for the increase in stamps duty. In fact , Halifax's April 2016 House Price Index announced negative growth in terms of house prices, since month on month April 2016 saw average house prices fall by 0. 8%, which the idea attributed to a lack of confidence in the wider economy. The Increase in Stamp Duty Fails to Dampen Landlords' Mood The increase seems not to have deterred landlords, as the number of landlords has risen to 1. 75 thousand thousand. This has mainly been due to the increase in lending and cheaper mortgages, as access to funds is one of the principal drivers in the property market. Another factor that has contributed to the increase in landlords has been the better yields, far outstripping interest investors make on their money saved elsewhere. Another positive is that consistent with Halifax's May 2016 House Price Index, house prices are resuming an upward trend, with month-on-month growth of 0. 6%. This suggests that the British public still very much has an appetite for property or home, and is welcome news to existing Verticus condo at Balestier. Strategies to Avoid Stamp Duty or Minimise its Influence Although the increase may make some investors think twice about investing in property, it needn't have to. There are plenty of ways house investors can work around the stamp duty increase or minimise its effect. Purchase Property in a Company Identity Stamp duty land tax can be avoided by purchasing property in a company name using a business loan. This also allows for interest payments to be tax deductible, exponentially increasing your return on investment because mortgages can be granted as much seventy-five per cent of the value of the property which amounts to a lot of interest. The Number of Mortgage Products Available to Reduced Companies is Increasing The number of products available to limited companies is increasing year-on-year. In H1 2015 there would be an average of 99 products available to limited companies, but in H2 this rose to 147 products. The number of home owner loan applications made by companies now accounts for over a third (38%) of all mortgage applications, up from 15% within 2014. It's also worth noting that mortgage acceptance rates are at an all-time high, so if you're considering investing in property, now is a good time to apply for a mortgage. Avoid Stamp Duty Altogether with Alternative Investments Which include Car Park Investments Furthermore, would-be buy-to-let investors are focusing on ways that they can avoid the stamp duty charges most of the time or minimise its effect. Car park spaces are exempt from the 3% stamp duty charge because they really are classed as commercial property. Car park investments can also give an 8% net assured income for two many years and has a five year exit strategy with buy-back option if you decide that the investment is not for your needs. Invest in Properties Outside of London for Lower Stamp Duty Costs Another option is to consider properties around areas outside of London. As mentioned previously in the article, properties in London are more expensive so there is proportionately more stamp duty to pay. Cities such as Manchester and Liverpool command a much higher rental yield letting you maximise your profits. Properties in these cities outside of London are generally much lower, so the amount of stamp job you'll have to pay is much lower. Birmingham is consistently considered one of the best areas for buy-to-let, and was just lately named by the Council of Mortgage Lenders (CML) as the number one buy-to-let hotspot outside of London. Average property selling prices in Britain's second city are considerably lower than property prices in London. According to Rightmove, overall usual property prices in Birmingham currently stand at £168, 062, compared to £556, 350 in London. With regard to property investors, this means that if they were to invest in property in Birmingham, they'd pay exponentially less in seal of approval duty compared to investing in London property. Student properties in Liverpool such as Pembroke Studios command an confident net rental yield of 8% for five years had have a buy-back option after five several years. Fortunately, in a city such as Liverpool there will never be a shortage of students looking for high quality accommodation due to the sizeable student population that comprises 12% of the city's overall population. Pembroke Studios is conveniently nestled within a mile's radius of four universities in Liverpool, so it's desirably situated for an overwhelming number of scholars. In conclusion, property investment is definitely still a viable way to achieve good returns, especially when interest rates for money secured in savings accounts is at record low. Property investors should make cautious decisions when it comes to investment, together with consider investing in towns and cities outside of London where possible. For those looking to bypass stamp duty forever, we recommend car park investments or other commercial investments that do not incur the charges.

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What to Ask When Looking for a Good Property Manager

Options ever searched for a good property manager before, then you know how difficult it can be to find a good one for your accommodation property. There are several property managers out there, probably more than what you really need to bring your property into the market. With many choices available, you may find it difficult to choose one for your unit. But don't worry - if you inquire the right questions while shopping around for property managers, you'll get a better idea of who would make the best fit for a property. Ask them these questions when discussing your property to see if they're the right property manager for you: 1. What type of properties have you managed? Experience counts for a lot in property management, and it can separate the nice ones from the ones you should steer away from. Experience in this field, however , isn't just about the number of years worked inside field; it's also about what type of properties they've managed. Depending on what type of property you have, you can either go with people who specialises in managing properties like yours or someone who has more varied experience managing different types of buildings. 2 . How do you screen potential tenants? Screening potential tenants is one of the most important steps to property management, therefore, the way they do this often reflects their level of service to your property. Ask them how they'll match tenants to your property and what their process is like for finding tenants. This will give you a better idea of that they operate and what lengths they'll go to find the right match for your property. 3. How do you handle late bills by tenants? Finding tenants is just one phase of property management; the longer phase involves taking care of the tenancy itself. Asking them this question will show you what their management style is like and precisely how they'll deal with critical rental issues like these. See if their process aligns with what you expect these phones do and how you want your property to be managed. 4. How do you respond to complaints? Similar to the previous question, the following question allows you to gauge how well a potential property manager will handle the landlord-tenant relationship. Take into account that a property manager will act as the mediator between you and your tenant, so it's important that you're comfortable with ones own process for dealing with any complaints or issues. 5. How often do you do inspections? Routine examinations are important to any tenancy agreement, and the number of times it's done per year will help give you better assurance as the landlord or owner. This question will also show you how well the property manager will look after your stuff even after the start of the tenancy. 6. What's the right rental price for my property? If you've done your quest beforehand, this question will let you assess how well a potential property manager knows the market and precisely what they can offer you. It also allows you to get a better idea of what your property is worth in the current market. Compare their option with different property managers to see what they offer and to better understand where your property stands in the market. 7. What are the things I can do to improve my listing? Asking them this question won't just reveal your expertise in property management, but it'll also help you put your property in the best position in the market. Take note their suggestions, assess how relevant they are, and decide whether or not they can get your property where you want it to remain. 8. What are the full costs and fees for managing my property? Some have small sign-up charges but a variety of hidden fees once you sign on and let them manage your property. Avoid getting surprised just by such fees, and ask them to indicate all management and service fees included in their service. The more intricate their fee structure is, the bigger the headache (and expense) it will likely be. 9. What can you do that some others can't? This is where prospective property managers will try to sell you on what they offer and how well people set themselves apart from the competition. It's also the part where you assess the intangibles in any working relationship, providing a better idea of how well they meet your standards. Listen well, take notes, and assess once they provide what you're looking for.