The Progressive Property Podcast Mark Homer on Stamp Duty
With the announcement, last week about the elimination of stamp duty on properties under five hundred thousand pounds as well as the reduction of VAT in certain industries, listen in today as Kevin and co-founder of Progressive Property and Property expert Mark Homer discuss the impact and the benefits this can have on you and your property business. Together they explain how you can leverage these announcements to suit you whether that be turning a commercial property into a residential building, paying less VAT on your serviced accommodation or receiving business loans or grants for your business.
KEY TAKEAWAYS
- Due to the circumstances surrounding the current pandemic, the government has announced the plan to scrap stamp duty completely for house price purchases for under half a million GBP, this is for everybody including homeowners and property investors apart from the additional 3% stamp duty. Meaning if you are a homeowner you pay no stamp duty (under 500k) and if you are a buy to let second property owner, you don’t pay the initial stamp duty but you do pay the additional 3%.
- One big benefit of this is that they have also announced the reduction in planning requirements around commercial. Making it easier for you to turn the commercial building into residential, which is a big opportunity right now. If you can do this before the end of March 2021 before things return to normal, and keep the purchase value under 500k meaning the incentive of the buyer is that they can purchase from you with no stamp duty to be paid.
- Many people have been struggling to fill their serviced accommodation units, at the beginning of the lockdown they were worried that their business would not survive. Had they applied for business rates then they would have qualified for a 10,000 pound grant per property. Now the reduction of VAT to 5% in this industry is a huge incentive to offer your guests to get them back into staying in your units.
- Now is the time to look for what is happening in the marketplace, be following the new updates weekly as things are continuously changing. Surround yourself with like-minded people, people that understand how to interpret the announcements that are coming from the government and who can take these and pivot their business to benefit from those announcements.
- You need to be thinking about your bounceback loans and the C Bills loans as the scheme is coming to an end in November. If you are trading properties or need development finance, some lenders have linked up with C bills to reduce the rate and potentially go higher loan to value which is very useful. Get out there and take advantage of those, making sure the company that you are taking the loan into is at least 50% operative as a trading entity.
BEST MOMENTS
“We have to look at it and see where this benefit may be.”
“Yes there is going to be unemployment, yes people are going to lose their jobs but this brings within opportunity as well, the opportunity for those who are educated and those who are looking in the right places to grab and spot the opportunity.”
“I suspect this change will probably help put a little bit of a collar underneath the housing market, which is going to get tougher.”
VALUABLE RESOURCES
https://www.amazon.co.uk/No-Money-Down-Property-Investing/dp/1909846767
ABOUT THE GUEST
Mark Homer is an entrepreneur investor. He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, and co-authoring the UK’s best-selling property books. Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.
Email: Markhomer@progressiveproperty.co.uk
LinkedIn: https://www.linkedin.com/in/markhomer1
Facebook: https://www.facebook.com/markprogressive
Twitter: https://twitter.com/markprogressive
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
CONTACT METHOD