Off-Plan Investors Stung By Higher Stamp Duties

Property advisors are calling for clearer clarification following the revelation that property investors who buy a new-build property worth more than £1 million which is not finished by the 6th April 2011 will now have to pay a higher stamp duty rates.

Currently this sum rests at 4%; however as of the 6th April 2011 property investors will be forced to pay increased fees of 5%.

And this could spell bad news for property investors who prefer to invest in off-plan properties…

Should they take beyond the 6th April 2011 to complete, there are no regulations in place to protect them from having to pay this higher fee – a characteristic which is unusual for the government who usually puts clauses into place to prevent such circumstances from occurring.

Without clearer clarification, property advisors are concerned that many existing property investors who have already entered into off-plan property investment contracts may wrongly be subjected to this rate increase…

More importantly, property advisors are worried that these rate increases will prompt many property investors to steer clear of this investment niche, a decision which could greatly hinder the recovery of the economy.

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Peter Franklin, Property Mentor Delegate

I used to believe stocks and shares were the only way forward, yet after 15 years of property investing, neither of these can compare with the sheer velocity or impact that property investment can have on your bank account. Only with property can you truly experience the power of being in control of immediate cash flow AND capital appreciation. Stocks and shares simply cannot compete. Read more