When time really is money
As the New Year gets underway, the phones have already been ringing off the hook with sellers and buyers keen to hear our views as to the likely market movements in the months ahead. All the indicators show a steady, busy property market on both sales and lettings this year with average house prices expected to rise by 5 - 6%.
One of the biggest influences will be the introduction of new government legislation. A 3% surcharge in stamp duty land tax comes into effect on 1 April for buy-to-let property purchases and second homes. This could have a number of ripples.
First and foremost, if you are thinking of investing in a buy-to-let property, act now. Right now. Mortgages and legal processes take some weeks so it’s recommended that applications are submitted by the end of January for buyers to stand a good chance of being able to complete the purchase by the 31 March and effectively save 3% of the purchase price.
The new stamp duty ruling will cost buyers an extra £7,500 on a property purchase at £250,000 after 1 April, a considerable sum to be paid in tax.
Serious investors (and second home buyers) need to make quick decisions but not act rashly. Taking the time to select your investment according to your financial goals is more important than ever. We’ve had a number of buyers calling in to discuss their plans face to face which is the best option as we can suggest alternative options to suit them. Our lettings specialists can also provide detailed investment advice to aid you in your decision-making.
With more investors acting fast, sellers would be wise to get their properties on the market as early as possible to make the most of the activity. A property can be on the market within a few days of the valuation, which we carry out at no cost. At Henry Adams we also include a free marketing tool kit to make sure your property achieves maximum exposure to potential clients.
After the deadline, the market may pause for breath but not for long as first time buyers beginning to enter the market will have the advantage over investors as they won’t incur the stamp duty surcharge and could benefit from the assistance of Help to Buy schemes.
2016 has certainly got off to a promising start and those who act quickly, both sellers and investors, are likely to reap the early rewards.
For free advice on all aspects of buying or selling residential property, contact any of our Henry Adams branches across the region where our partners, senior managers and staff will be pleased to help you achieve your New Year property goals whether you’re selling for the first time, downsizing, relocating or investing in buy-to-let.