Investment opportunities in property
Property market experts are urging buy-to-let investors to make use of the current stamp duty holiday on property purchases. Landlords are encouraged to expand their portfolios by taking advantage of investment opportunities in property while the scheme is in place.
The Managing Director of Mortgages for Business, Steve Olejnik, said, “Clearly, landlords need to take advantage of the stamp duty holiday before the window closes in March next year.”
Investors are at an advantage
Property investors need to move quickly to get the full benefits of the stamp duty holiday; before owner-occupiers are able to do so.
Many investors have been preparing for the reopening of the property market since lockdown by remortgaging their portfolios. This gave them the potential to snap up investment opportunities in property once the market reopened.
Owner-occupiers have not been doing the same. First-time buyers don’t have the same flexibility, meaning property investors are currently in a great position to expand their portfolios. But this won’t last forever and investors shouldn’t hang around.
Buy-to-let landlords are also well-placed to qualify for new mortgages. The cut in stamp duty means investors now have more cash to put down a larger deposit. The measures should help those still looking to remortgage too, as the scheme may underpin property values.
Many savvy property investors have been remortgaging their portfolios since April, ready to jump on any investment opportunities in property as soon as possible. The stamp duty holiday will only make them even keener to do so.
Mortgage for Business found that 46% of landlords had increase the size of their loans; much higher than the long-term average of 38%.
The stamp duty holiday is just one of the reasons why now is the perfect time to invest in buy-to-let property; something perceptive investors understand well.
Huge savings to be made
Chancellor Rishi Sunak’s stamp duty holiday has increased the threshold for stamp duty land tax (SDLT) to £500,000 for all properties in England and Northern Ireland. The scheme is set to continue until March 31st 2021, after which the rates will revert to normal.
Investors into buy-to-let property, purchasers of second homes, or overseas investors will still need to pay the current 3% SDLT surcharge. But while the scheme is running, property investors can still make savings of almost £15,000 on the purchase of a £499,000 property due to the cut in stamp duty.
Start your investment now
If you’re a buy-to-let landlord, don’t wait around and miss great investment opportunities in property. Contact the experts at North Property Group today to get your investment started now.