What Investors Must Know About The UK Property Stamp Duty Holiday
It’s no secret that the COVID-19 pandemic has caused massive damage to the global economy.
Over the last few months, countries around the world have been imposing rules and regulations to contain the spread.
To a certain degree, those measures have been successful for the most part.
But it’s not just about containment. Another important factor, especially when looking towards the future, is recovery.
And property is a key driving force for the world’s gradual ascend back to pre-pandemic times.
After all, more people buying homes will greatly boost the economy.
Take the UK for example. A stamp duty holiday has been put in place for all property buyers effective immediately, until 31 March 2021.
This is a move to encourage more property purchases within the next few months.
So what exactly is the stamp duty holiday? How does it affect property prices? And why should investors seize this unmissable opportunity?
All that and more, will be revealed in this article.
Prior to the new holiday announcement, these are the stamp duty rates property buyers must fork out:
Now let’s look at the new rates:
Most of you reading this are likely to be overseas property investors.
So do focus your attention on the right-hand column of both tables.
You’ll notice that the biggest change is that the tax band for a property between £125,000 and £500,000 is now capped at 3%.
Which is a significant drop from the previous 5%-8%.
On average, buyers can now save around £15,000 for a £500,000 property purchase before 31 March 2021.
A mass discount like this rarely ever occurs in any property markets. As the saying goes, crisis breeds opportunities.
And this opportunity is one that should not be overlooked!
Singapore is another property hotspot drawing much attention from investors seeking a safe haven during this uncertain period.
But how does its stamp duty rate compare to the UK’s new figures?
If you’re a Singaporean citizen or permanent resident, we assume that you’ll be buying a second property for investment purposes.
In this case, the stamp duty rates you’ll need to pay is 12% and 15% respectively.
For foreigners, this number increases to a hefty 20%.
Compared to the 3% offered by the UK for a limited time, it’s clear that in terms of dollars and cents, UK property offers a lot more value-for-money.
How To Select The Right UK Property Below £500,000
When you consider all the criteria in place, the number of UK properties that are eligible for stamp duty benefits are not overwhelmingly high.
However, quality always trumps quantity when it comes to property investment.
That’s why we’ve established strategic relationships with prominent UK developers.
Many of them offer high-gain properties below £500,000, meaning that investors can gain from the stamp duty holiday, and see a significant appreciation in property value over the next few years.
If you’re keen to find out our shortlist of UK properties below £500,000, do drop us a message.
Remember to act fast though. The stamp duty holiday rate expires on 31 March 2021.
Take too long, and this lower-than-usual rate is likely to be gone forever.
So fill in your details below, and we’re looking forward to sharing our exclusive list of discounted UK properties with you!
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