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Is it worth hanging on to your home?
I nvestors and second home owners all over the country are dreading the expected news that Capital Gains Tax is set to rise which will be detailed in the forth coming emergency Budget.
Recent reports have confirmed that the prospect of an increase has prompted a rush in owners to sell their properties, as the previous advantages of being a buy-to-let landlord are disappearing.
Ahead of the Budget, where this policy is expected to be introduced with immediate effect, Bryn Cole of Paragon Advance , providers of services to the lettings industry advises “Look at your own personal situation, and think long term and at the possible rental yields you could gain in the next ten years or so. Although buy-to-let mortgage deals are still not great, they are getting better. This combined with the fact that rents are rising, meaning that rental yields will improve could suggest that it is worth hanging on to your property. For the ‘accidental landlord’ this decision will be more difficult as you may need to think short term and realise your gains while you can.”
He continued: “The buy-to-let market fuels the housing market and the government should be looking at the buy-to-let market as a business. Since the beginning, one of their focal points has been on helping businesses, this change certainly won’t, but the buy-to-let market is a big business within our economy.
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