However, despite this celebratory note, many property advisor's believe such actions could slowly be tightening the noose on property investors the higher they go up the property ladder.
Earlier this year Vince Cable wanted to introduce a ‘mansion tax’ on property investments worth more than £1 million; yet since this news was aired a couple of months ago it has been extended to £2 million+ properties and risen from 0.5% to 1% on its annual levy.
To date less than 65,000 properties within the UK are worth more £2million, yet the implementation of this mansion tax could potentially generate more than £1.3 billion in revenue.
A figure that would undoubtedly have a positive impact on the UK economy.
Yet despite this optimism many are still undecided about whether or not this is the right route to go.
Many property advisors feel these taxes could drive the rich out the property investment market, whilst others feel it is the only way reasonably forward when the following is occurring:
Bankers are helping themselves to our bonuses – more than £13 billion is expected to be given out in bonuses to 5,000 bankers
- Executives pay is out of control
- Non-doms are buying property via offshore companies – thus escaping stamp duty costs
- With such outgoings happening across the entire breadth of the UK, the implementation of this mansion tax may in truth be the only way to rectify it.
More About the Author
Fraser Stirling, Property Mentor DelegateNo matter what the media wants you to believe, property is still the only investment route where you can benefit from an asset that will NEVER go into zero value. Even when I was university I admired properties ability to withstand the economic elements and stay strong, even when other investment forms faltered or failed. X years on, I am now the proud owner of multiple property investments - one of which earns a passive income of £4,680 and my property portfolio is still expanding. Read more
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