With changes to stamp duty the time is now
In the Autumn Statement the chancellor George Osborne has announced some further significant changes to stamp duty land tax (stamp duty). Stamp duty is a tax paid when you purchase a property, a useful guide can be found here: Stamp Duty Guide
Mr Osborne has announced he will levy an extra 3% stamp duty for those buying a second home or a buy to let investment from 1st April 2016.
What impact will this have if you are planning to buy a second home or a buy to let?
If you are buying a second home at £750,000 you will currently pay £27,500, after 1st April next year you will have to pay a further £22,500 taking the total bill to £50,000.
For a £250,000 buy to let investment this will treble the bill from £2,500 to £7,500.
At the higher end of the second home market it will add £60,000, taking the total bill to £213,750 to purchase a £2,000,000 property.
What impact will this have upon the Cotswold property market?
Long term this will be accepted and factored into a purchase, it will of course mean a buyer will be able to offer less on any given property, however it will not stop the market moving. Property is a very strong investment and the cost of the extra stamp duty will be soon outweighed by the properties appreciation.
In the short term we are expecting a strong pick up in the market and a very busy winter period. Any buyer considering a buy to let purchase or a second home purchase in 2016 will start their search immediately to save on the increase which will be levied from next April.
So if you are looking to buy a second home or a buy to let investment there are considerable savings to be had if you act now.
If you are considering marketing your home for sale, and it appeals to investors and second home owners I would strongly recommend you come to the market now to take advantage of the increase in the numbers of buyers in this sector.
I you are considering selling in the near future we would be delighted to advise you on the best strategy to secure the very best price for your property. Please contact us in Moreton-in-Marsh on 01608 651188 or in Broadway on 01386 858510.