Why it is a good time to invest?
With changes to stamp duty land tax at the end of last year it is easy to see why now is a good time to take the plunge and buy a property to let. It has opened up great opportunities for second and third time buyers to move from their first homes as the cost is now more affordable with staggered stamp duty land tax. If someone is spending Â£300,000 on a home they would save Â£3000 on stamp duty with this new system. You may wonder why I am writing about this when it is old news.
The reason is simple.
With second and third time buyers moving into these higher value properties this in turn should release more first time buyer / investment properties to the market which in turn offer better yields compared to higher priced property. With this is mind the first quarter of 2015 is a perfect time to start looking and investing in these properties before pension legislation changes in April where people over 55 can take large proportion of their pensions as a lump sum. It is widely publicised that a lot of these people will re-invest this money in property.
Now could be a small window of opportunity to secure a good property at a fair price before these cash rich pension buyers hit the market in search of better and easier to understand returns instead of that offered by their current pension providers. With more demand the prices are likely to go one way.
If you are considering investing in a property, and would like some guidance, then feel free to contact one of our Norwich estate agents at Pymm & Co on 01603 305805.