Holding UK Property Is Costly, Is There A Better Way?
Holding property as a form of investment to improve a family’s future, can be costly in the UK. Initial costs of investing in real property include Conveyancing payable to a solicitor, duty on the purchase price & additional for property, possible cost to furnish property and fees to source tenant. Additional ongoing fees may include fees to a management agent, maintenance fees for communal property, landlord certificate for gas boiler, fee for PET testing, upkeep and final property gains tax.
Property gains tax can eat up all or most of any profit when energy and resources are exhausted and acquisition of investment profit is attempted a final property sale. In addition to the general purchase and ongoing costs, there always have been the age old inconveniences that may include tenant damage, storm or weather damage, costs incurred when tenant refuses to pay the rent and the unavoidable need to file a tax return with HMRC.
Is there a better way? Many are lucky to be able to take advantage of current UK conditions that have converged to produce a modern day investment potential. Resent changes to the Housing Bill in 2017 have opened an interesting window of opportunity. Many may have considered a brownfield site investment in the past and rejected the project for many of the same cost disadvantages as mentioned above. Today a special purpose vehicle is created to reduce individual exposure to those disadvantages.
Originally acquisition of local permitting made this type of investment as problematic as any property holdings. Now with the use of a UK limited Company as a special purchase vehicle and the changes in the housing bill, these detriments have been removed and brownfield fund investments have become enormous advantages. A public investment vehicle like this has never before been available to the single family investor.
A Brownfield fund investment is a better way to improve a family’s future. As a means of fulfilling the demands of the new housing bill, local councils have been setting local target goals. In order to meet these goals local councils are open to permit applications that meet these required target goals. Experienced specialists provide the guidance to brownfield investments funds utilizing special purchase vehicles, making sure these goals are accounted for within the application for permits for the project.
The enrichment potential provided for within this form of the property development project is nearly unlimited. The time to act to take the most advantage of current conditions is now. Many local councils are looking at application permits, making long term decisions on how to meet required growth target goals today. Even if one has looked at brownfield site investment before and rejected the thought, it is time to reconsider this thinking.