Commercial Property New Stamp Duty Changes – Equity and Capital

The Government has announced a reform of Stamp Duty Land Tax (SDLT) for commercial property in today’s budget.
As part of his revenue raising budget, Osborne declared a 1% increase in the highest rate of SDLT on commercial property. This combined with an increase in duty on certain leases, is expected to raise approximately £2.5bn over the next five years on commercial property transactions. The increase has come as an “unexpected shock” for the real estate market and will affect existing property values.
Even more of a surprise was the increase in duty on new leases where the net present value of rents on grant is over £2m. Large businesses who take such leases will now be presented with a 2% charge on that value, and a 100% increase on the existing charge. This may accelerate the trend to shorter leases on commercial property.
Large scale residential investors will be disappointed that the hoped for exemption from the additional 3% rate for buy-to-let investors has not materialised. In practice this means that larger scale purchases are likely to be taxed at the new commercial rate of 5%. This may affect the attractions of this sector for institutional investors.

Why Invest In Outer London

Why Invest In Outer London

The Map Below demonstrates how significant Capital Growth is still being generated across certain Parts of London and Based on Experience this is being Driven by Buy to Let Investors, As you can still originate a very good income with Buy to Let investment alongside double digit returns on Equity being achieved in area’s such as Bexley , Barking & Dagenham etc. Rents are increasing at Momentous levels which is sustaining this Market and with the Lack of Housing in the Capital its very difficult to see this slowing down in these Micro Markets.

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L&G and PGGM reveal £600m PRS deal to build 3,000 homes

L&G and PGGM reveal £600m PRS deal to build 3,000 homes

27 January 2016 9:20 am
Legal & General Capital (LGC) and Dutch pension fund manager, PGGM, have revealed a £600m build to rent partnership, which will build an initial 3,000 homes.

Tritax seeks to raise £100m from share placing

27 January 2016 9:18 am
Tritax Big Box REIT is seeking to raise £100m via a share placing, offering a 5.8% discount on the current share price to potential investors.

How to Find the New Property Hotspot

How to Find the New Property Hotspot

I’m always being Asked by a number of people where is the Next Property Hotspot, My reply in most instances it all depends on your attitude to Risk and what your actually looking for, my advice to everyone is look at combining capital Growth with sensible return’s on Equity.

Top Tips for Residential Property Purchasers

 

Transport Links

Without Question this is very important as much of your target market whether it’s for Rental or Resale are looking for fast Direct services into City Centres but don’t be scared to go further down the line. ( look out for Cross rail and don’t forget there’s a Phase 2 being launched )

 

Education

Our Children’s Education is very important and some Parents will do anything to get their Children into ‘that School’ this has resulted in vibrant Property Markets around there catchment areas, keep up to date on how Local Schools are performing.

 

Estate Agent Activity

A good sign of spotting an upcoming Area is Estate agents opening Secondary branches in the outskirts of Towns , this usually means there expecting good activity and Growth in the area and there looking to seize the opportunity.

As you can imagine there are other considerations that should be made Most Importantly the Property Itself look beyond the cosmetic appearance but structural changes can be costly so you cannot afford to make mistakes especially if you have limited experience in the sector.

Milton Rodosthenous

Equity and Capital