“A Reasonable Budget for Property”
There have been mixed messages surrounding Tuesday’s budget, with most criticism predictably coming from those now sitting on the opposition benches.
Whilst everyone was expecting tough measures, those announced are unlikely to have a major impact on the recovering property market. The Stamp Duty tax break for first time buyers up to £250,000 remains in place, which is good news. The two main changes concern Capital Gains Tax and VAT.
CGT is rising with immediate effect from 18% for basic rate taxpayers to 28% for higher rate taxpayers. This nevertheless remains well below the 40% it used to be until just three years ago. This is unlikely to affect the majority of homeowners as in the UK, unlike many other countries, we enjoy tax exemption from any appreciation in the value of our principal residence.
However, second home or buy-to-let owners will need to take this new regime into account when deciding whether or not to sell. An important consideration is that any gain is actually added to income for CGT purposes and could well tip a basic rate taxpayer into the higher rate bracket.
The good news is that this change is immediate. Had the chancellor decided to implement this from eg. the next financial year, there would have been a flood of properties entering the market in order to avoid the hike, thereby undermining prices.
VAT is to rise from 17.5% to 20% from January. This 2.5 point rise is again unlikely to affect property prices as it will only apply to certain costs of sale such as removals, solicitor’s fees, and estate agency fees. The actual figures involved are relatively nominal, and are unlikely to prompt people to sell as a direct result. At xxxx agency we’ll be absorbing the difference for all our selling clients for a whole year in any event!
©Copyright 2010 Richard Rawlings except as excluded under licence.
Wednesday, June 30, 2010
Tuesday, June 29, 2010
Housing Market Filled With Vigour & Optimism
With the instability and uncertainty of the election period behind us and a stable coalition government now in place, the housing market is filled with a renewed sense of optimism and vigour.
One of the first acts of the new government, and the catalyst for this vitality, was to abolish HIPS. This was a real shot in the arm for the housing market and just what was needed to encourage potential sellers to have a go at selling their property without having to pay out a large upfront fee.
Since then, we have had the emergency budget and are pleased to report that the slight pre-budget lull has turned into a post-budget, post-HIPS, post- election surge of new interest!
This surge is reflected in the fact that our offices, both town centre and East Ipswich are busier than ever and new enquiries are coming in thick and fast over the phone and from our web site.
Property prices are increasing once more so now is the time to get on to the property ladder or to move a few rungs further up it. Vendors can take steps to make the most of their properties to achieve the best prices. These could include de-cluttering, finishing off any annoying jobs and tidying the gardens to increase that all important curb appeal.
Buyers can look to securing some good mortgage deals at the moment as the banks continue to loosen their lending criteria. And remember, if you can get into a strong position, before you make an offer, then there are still deals to be had! Once you have secured a buyer, or if you have no independent sale, then your estate agency can negotiate you a good deal on your new home – saving you money on the purchase of your next property.
All in all, this has been a generally good budget and one designed to bolster the economy in many ways. Stamp duty rates remained the same as they were set to in March 2010, which is good news for first time buyers. VAT is set to increase to 20% in January 2011, so if you are serious about moving, act now, to avoid increase VAT charges on your moving fees.
Sell your Ipswich property – click here to arrange a free valuation.
One of the first acts of the new government, and the catalyst for this vitality, was to abolish HIPS. This was a real shot in the arm for the housing market and just what was needed to encourage potential sellers to have a go at selling their property without having to pay out a large upfront fee.
Since then, we have had the emergency budget and are pleased to report that the slight pre-budget lull has turned into a post-budget, post-HIPS, post- election surge of new interest!
This surge is reflected in the fact that our offices, both town centre and East Ipswich are busier than ever and new enquiries are coming in thick and fast over the phone and from our web site.
Property prices are increasing once more so now is the time to get on to the property ladder or to move a few rungs further up it. Vendors can take steps to make the most of their properties to achieve the best prices. These could include de-cluttering, finishing off any annoying jobs and tidying the gardens to increase that all important curb appeal.
Buyers can look to securing some good mortgage deals at the moment as the banks continue to loosen their lending criteria. And remember, if you can get into a strong position, before you make an offer, then there are still deals to be had! Once you have secured a buyer, or if you have no independent sale, then your estate agency can negotiate you a good deal on your new home – saving you money on the purchase of your next property.
All in all, this has been a generally good budget and one designed to bolster the economy in many ways. Stamp duty rates remained the same as they were set to in March 2010, which is good news for first time buyers. VAT is set to increase to 20% in January 2011, so if you are serious about moving, act now, to avoid increase VAT charges on your moving fees.
Sell your Ipswich property – click here to arrange a free valuation.
Friday, June 11, 2010
Be a World Cup Winner with Jonathan Waters Estate Agents!
The World Cup starts today and to mark this exciting event Jonathan Waters Estate Agents are running a fantastic World Cup competition!
For all sellers come onto the market with Jonathan Waters Estate Agents in Ipswich and Clacton, during the World Cup (11th June - 11th July) will be entered into a prize draw to win their house sale totally free of charges!
What's more, all new sellers who list their property for sale during the span of the competition, will receive £250 (inc VAT) of our standard selling fees* and a £25.00 donation will be made by Jonathan Waters Estate Agents to the Genesis Orwell Mencap.
And if England win the World Cup we'll celebrate with you by increasing our offer to £500 (inc VAT) off our standard commission fees!*
To take advantage of this amazing offer, contact us now to arrange your free property valuation!
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