Property’s Reputation As A Diversifier Is As Strong As Ever

Property’s Reputation As A Diversifier Is As Strong As Ever
Property’s Reputation As A Diversifier Is As Strong As Ever Property’s reputation as a diversifier is as strong as ever. We were reminded of this late last year. We asked 500 investors why they were drawn to property investment – and the benefit of this asset class as a safety net was one of the most popular reasons cited. The responses revealed how property is seen as a go-to diversifier; investors are looking for options that are above the fray of other asset classes and indices – to bring an added level of security to their portfolios. There is, of course, much more to property than simply a second canopy in case your stocks and bonds go into free-fall. Whether your aims are long-term capital growth, or income generation (or a combination of the two), the right property investments can certainly add real value. But specifically when it comes to risk-balancing, evidence certainlyRead more

Housing: Stamp Duty, Supply And More

Housing: Stamp Duty, Supply And More
Housing: Stamp Duty, Supply And More Central to this is housing, which the Government has seen as essential to both its political and policy agenda. While housing has played a key role in the Budget formulation, this has predominantly been focused on the domestic market, looking for new ways in which to boost home ownership, particularly amongst young people, rather than focusing on overseas investors in UK property. The most eye catching announcement was the cut in stamp duty for first time buyers. Philip Hammond said he would abolish stamp duty on homes priced up to GBP300,000. This is very much restricted to first-time owner-occupiers who reside in the UK, which, although seen as a positive move to aid younger people getting on to the first rung on the property ladder, is also seen as a potential catalyst for rises in prices by some analysts. In full, the key announcementsRead more

Is the global property bubble ready to burst?

Is the global property bubble ready to burst?
Is the global property bubble ready to burst? Residential global property has arguably been the most exciting investment of the past eight or nine years, but lately the fun has been draining away. House and apartment prices have been driven sky high by rock bottom interest rates and there are growing signs that they cannot go any higher. Affordability has been stretched as far as it can go. Buyers are reluctant to part with their money at these levels. The days of double-digit annual house price increases appear to be over. The question now is whether the market is merely slowing, or whether it could go sharply into reverse. Is this a bubble, and if so, could it burst? Nothing lasts forever. London was the world’s No 1 property hot spot, but lately the luxury end of the market has slipped. Completed sales of newly-built flats in prime central LondonRead more

Changes to Stamp Duty

Changes to Stamp Duty
Changes to Stamp Duty On December 4th 2014 stamp duty on property purchases was reformed by the Government. At the time the Chancellor George Osborne stated around 98% of purchasers in England and Wales would pay less after stamp duty reform. Changes to stamp duty meant people who buy homes for under £937,000 would pay less in tax when compared to the old system. From April 2016 a 3% Stamp Duty Land Tax surcharge has applied to purchases of buy to let property and second homes. In Scotland a similar LBTT 3% surcharge applies to additional property transactions from April 2016. Old Stamp Duty System With the old system before December 2014, stamp duty was considered to be a “slab tax” where higher rates were incremented and applied to the whole property purchase price. The old system meant there were sudden increases in stamp duty liability as the purchase priceRead more

Consultation On Property Wear And Tear Allowance

Consultation On Property Wear And Tear Allowance
Consultation On Property Wear And Tear Allowance In the Summer Budget 2015 the Government confirmed its intention to introduce measures to improve how landlord’s businesses are taxed. The new measures which are detailed in the full Consultation Document are designed to provide consistency and fairness in the taxation of rented properties. However, you still have until 9 October to submit your comments and responses to the consultation. An outline of the new measures is given below and we’ve also produced a handy fact sheet which you can print out: The changes The current 10% Wear and Tear Allowance which allows landlords to reduce the tax they pay, regardless of whether they replace the furnishings in their property, will be replaced. From April 2016 landlords will only be allowed to deduct the costs they actually incur for replacing furnishings in their rental properties. Eligibility All landlords will be eligible for the relief respective of whether theyRead more

Capital Gains Tax changes for expatriates and overseas buyers brings the UK in line with other global property markets

Capital Gains Tax changes for expatriates and overseas buyers brings the UK in line with other global property markets
Capital Gains Tax changes for expatriates and overseas buyers brings the UK in line with other global property markets The UK government published draft legislation that detailed changes to Capital Gains Tax (CGT) on the sale of properties for overseas and expatriate  investors. This brings changes for the UK in line with other property markets and aligns overseas and expatriate property investors the same as UK resident home-owners. From 6 April 2015, non-resident UK property investors will be charged on gains made from the sale of their property of between 18% and 28%, this is the same rate as resident home-owners in the UK. The UK government has deemed any UK property owner who spends less than 90 nights in their property to be a non-resident investor and CGT will also be charged on off-plan properties. Other key points arising from the draft legislation are provided below. The changes meanRead more