You've come into some money, now what? Whether you've inherited, won or earned this capital; you know that it's not going to be able to do much for you sitting in your bank account. Nor will it grow, given the anaemic rates of most savings accounts. You need to invest in a stable growth market... and contrary to popular belief, now's a great time to get in on Buy-To-Let!
Want to know more, check out our Buy-To-Let guide for Central London below.
Now's a great time to invest in a London property
While some investors may be wary about the current state of the UK housing market, many overseas buyers have been filling their boots, buoyed by the favourable exchange rates. Even in the event of a no-deal Brexit and the recent changes to tax relief for landlords earlier this year, now is actually afantastictime to invest in London property, as in the long run, it has always proven to be a great investment.
Also, after a recent slump in prices, 23 out of London's 32 boroughs are reporting increases in activity which will translate to future increases in price. Right now though, property is once again in a sweet spot where prices are still relatively affordable, but be quick before full confidence returns and prices start to rise again!
As the nation's hub of commerce, culture and industry; Central London sees people from all over the country, and indeed the world, settle to join the capital's thriving job market. And these cash-rich, asset-poor professionals all need somewhere to live. On top of this, there is a huge influx of wealthy overseas families arriving here each year to send their children to some of the finest colleges and universities in the world.
The stats from Statista show that with the consistent demand for rental properties, prices are forecast to grow by 10.9% across greater London and 8.8% in central developments.
Another good reason why this is a great time to join the ranks of successful Buy-To-Let landlords is because of the increase in personal allowance for the 2019-2020 tax year, which has gone up from £11,850-£12,500, meaning that you get to keep more of your profits.
You can also expect an increase in personal allowance on your capital gains tax, which increases from £11,700 to an even £12,000 this tax year. So, if you're thinking of buying a property jointly with a spouse or partner, this means that you can enjoy a combined £24,000 in profits, tax free!
Although the tax relief is being phased out on mortgage interest, dropping from 50% to 25% this financial year, landlords are still entitled to a 20% tax credit which can be applied to the remaining 75% of their mortgage interest.
We hope this Buy-To-Let guide has been useful in helping you understand why Buy-To-Let is still a great investment option. If you'd like to know more about the suite of services we offer our landlords, please click here to get in touch or give us a call on 020 7323 2277.