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Buy To Let Investments - Still Great For The Long Term Investor

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Published: 20/03/2016   Last Updated: 07/04/2016 13:09:47   Tags: Buy To Let, Estate Agents Wimbledon, Estate Agents Colliers Wood

With the recent announcement of 3% increases to the stamp duty rates payable on new buy to let purchases and second properties, landlords are going to have to pay a higher amount on stamp duty from this April.  For example the tax bill on a buy to let worth £250,000 is currently £2,500, but from April this increases to £10,000.

Value of second   Current stamp   Stamp duty from     Increase in

      property                  duty             1st April 2016            Tax

  

     £150,000                  £500                    £5,000          +£4,500
     £250,000                  £2,500                 £10,000        +£7,500
     £350,000                  £7,500                 £18,000        +10,500
     £450,000                  £12,500               £26,000        +£13,500

Landlords looking at the long term will realise buy to let is still the way to go for a good investment.  Rents are still strong with void periods rare and recently, properties in the Merton area have been increasing in price.
Ellisons sales records show in the last 5 years properties (property prices) have increased by an average of 40%. 

 

With this trend most likely to continue, the sound investor will know, that although the initial outlay to purchase is higher, with anticipated capital growth taken into account, the extra stamp duty will definitely be worth while!

 

For further advice on buy to let contact our lettings department on 0208 944 8626.