You know when it feels like you are trying to push water uphill and then comes along a bit of news that makes you realise its not all that bad. I had this moment just now.
The last time was when interest rates hit 0.5%. it felt great when rates dropped to near zero along with our mortgage costs.
Now here is another bit of good news:
Stamp duty to be reduced for buy to let investors!
There was me thinking the government is against us with their regulation, regulation and did I mention regulation. Now they want to give us a tax break.
So here is how it will work. If you try and buy a £1m portfolio comprising of 20 x £50k flats you will have to pay £40,000 stamp duty as the purchase is deemed connected and hence stamp duty is payable on the gross combined amount. So this adds £2k to every flat.
The proposal is that you pay the stamp duty at the rate for the individual property. So in the above example a nil charge would apply.
Now this really helps. I have bought portfolios and been caught by this. You simply have to raise the cash and pay it. But probably not anymore. This is excellent news for us.
There has been an outcry by first time buyer pressure groups but no surprise there. They say it will disadvantage the FTB but actually it just puts us in the same position as them as the amount of stamp duty we now both will pay will be equal. Previously investors were having to pay up to 4% more.
So just when you think we are the most hated type of investor think again. Maybe the government is realising that we hold the key to solve their imminent housing crisis. So if you are listening Gordon yes we can and any help is much appreciated!
If you are interested in specifically buying property portfolios please get in contact as we do come across portfolios about every other day.