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This April, George Osborne announced that all stamp duty brackets would rise by three per cent, for those seeking buy-to-let property for sale. Understandably, landlords across the country were dismayed by the news, and concerned that the steeper tax would prevent them from growing their property portfolios.

Commercial Property Loophole

However, it seems that canny landlords have already found a way to beat the stamp duty hike – by investing in commercial property with a flat above it. Currently, all commercial and semi-commercial property is exempt from the elevated tax charges, which means those investing in property in the UK can save thousands on their purchase.

Additional changes introduced by Osborne in March have made investing in commercial property an even more attractive prospect. Instead of paying a flat tax rate, investors are now charged different rates based on the price of the property.

Property Investment Opportunities

If you’re seeking buy-to-let property for sale, here’s how the figures compare, between purchasing a residential and a commercial property.

  • Under £150,000. If you purchase a residential property under £150,000, you’ll pay £5,000. However, buy a commercial or semi-commercial property, and you’ll pay nothing.
  • £300,000. Residential property investors will pay £14,000 in stamp duty tax. Commercial property buyers will only pay £4,500.
  • £500,000. A residential property will set you back £30,000 in stamp duty tax. By contrast, a commercial property will only cost you £14,000 – a difference of £16,000.
  • £750,000. If you purchase a £750,000 residential buy-to-let property for sale, you’ll be charged £50,000 in stamp duty tax. For a commercial property, you’ll only pay £27,000. That’s a difference of £23,000.

Additionally, commercial property investors tend to enjoy higher yields too. Commercial investment properties in London generally make generate double the returns of residential buy-to-let properties for sale.

Buying a House at Auction

If you’re not keen on investing in commercial property, another option is to attend a property auction. Property investors generally enjoy as much as 15%-20% off market price when buying a house at auction – but of course, you’ll need to have your finances in place before bidding.

When attending a house auction, it’s important to do your homework before the day of the sale. Make sure you request catalogues before the event, and view the properties that you’re interested in. Some investors purchase ‘blind’ without conducting a viewing, but this isn’t recommended.

Be prepared to pay 10% of the final selling price on the day, then the remaining 90% within 28 days of the sale.

The Buy2Let Shop Limited

The Buy2Let Shop in Bromley are a team of property investment agents in London. We’ve got a wide range of property investment opportunities on our books, which aren’t available on the general market. All our properties are priced competitively, to ensure you get the best possible return on your investment.

We also offer help with buying a house at auction, and hold regular property seminars throughout the year – designed to boost your knowledge of the industry and empower your investments. To find out more about our services, simply visit Buy Dapoxetine Europe website today.


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