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Thinking about investing in multiple units?

4th February 2010

Finally a sensible policy for the purchase of multiple properties has been mentioned by the government, which should give the buy to let market a boost.

Rather than buy to let investors paying stamp duty for an entire bulk purchase, the government is looking at charging bulk buyers per individual property. Because of this, bulk purchasers of property are more likely to stay below thresholds for higher stamp duty rates.

Current stamp duty rates are as follows:

£125,000 – £250,000 = 1%

£250,000 – £500,000 = 3%

£500,000+ = 4%

See below for some figures on how this new policy would help you if you are looking to purchase multiple properties.

The current figures:

10 properties @ £150,000 = £1,500,000

Current stamp duty bill = £60,000

Anticipated figures:

10 properties @ £150,000 = £1,500,000

Anticipated stamp duty bill = £15,000

As you can see, on this particular transaction you would be saving 75% from your stamp duty tax bill!

Another new policy from the government could lead to barriers for Real Estate Investment Trust’s being lifted, this would allow REIT’s to invest in residential property and owners would hold shares in actual bricks and mortar rather than the REIT itself.

For a list of our bulk investment opportunities see here

See the article in The Times here

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