The phased removal of tax relief for would-be buy to let landlords, plus a stamp duty surcharge on second property ownership, has seen a big fall in demand since April 2016 when the new rules came into effect, as well as a reduction in mortgage approvals from lenders. Analysts suggest that these factors have contributed the recent, all-be-it small, drop in house prices, which will be welcomed by first time buyers.
Buy to let property investment has been seen as an attractive and reasonably low risk investment strategy in recent years, however, tempting alternative strategies are emerging for those looking for good returns. For example, if you had invested in our medium risk portfolio over the last seven years, your money would have grown by 78.29%*.
It is understandable why peoples’ appetite for property has dwindled due to the combined hassles of tenants, management companies, agents fees, taxation, stamp duty increases, lower rental yields, not to mention the difficulty in selling your property exactly when it suits.
If you are interested in finding out more about diversifying from a property heavy portfolio, or are keen to learn about a low cost, personally risk-rated, tax efficient (often tax free) alternative, with an experienced Financial Planner, The Financial Planning Group are here to provide the right advice for your exact circumstances.
To arrange an investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.
*Note: Performance figures verified by FE Analytics. Past performance of an investment is no guide to its performance in the future. Investments, or income from them, can go down as well as up. You may not necessarily get back all of the amount you invested. This applies to both Investment Property and Investments alike.