Nova Financial Ltd featured in Property Question Time on the Property Sky Channel 198
Our Managing Director Paul Mahoney on the Expert Panel:
Bonnie Bilson: We are now going to go to Paul for a golden nugget. Paul, what piece of information are you bringing to the table today?
Paul Mahoney: Well, there’s been quite a few changes in the buy to let market recently and the three main changes recently have been firstly with regards to the way that mortgage interest is being treated from a tax perspective. Secondly, a stamp duty premium for all second duty purchases and any further purchases. And lastly, mortgage service ability. And all of these changes are causing a lot of uncertainty and a lot of change in the market on how best to deal with them.
Very simply, the best way of getting around each of these changes and what’s causing quite a big shift in the market, is a shift away from high value, low yield assets. And if we’re talking about the UK that’s predominately London and the Southeast toward lower value, high yield assets, because if you’re getting a high yield the tax doesn’t hurt you as much. If you’re buying at a lower value, the stamp due doesn’t hurt you as much. And again if you’re getting a high yield than the mortgage service ability issues don’t hurt you as much either. So I suppose I’ve simplified it there but making sure you know how these things are going to affect you and how you can deal with them moving forward is very important.
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