Things You Must Consider For The Investments In PropertiesApril 6, 2016
When you are thinking of investing in the properties there are various legal and financial matters that you need to take care of. There are innumerable property investment opportunities in the UK capital, but the selection of the best properties is your job. If you’re interested in making investment in the properties in the UK capital city, then you must know what the rates of lands, taxes are and other related rates and cost are prevailing in the market at that point of time. Over years, it is seen that investing in the real estate of UK made profits for the investors. It is evident from the real estate investment in the UK, that during the crisis in the stock markets, real estate pays well.
The things you need to know and consider about making investment in the properties and the real estate of the UK capital are as follows:
Firstly, there are opportunities of making overseas investment in the UK real estate markets. There is no boundary for the overseas clients or the investors who wants to buy a property in UK.
Secondly, there are total five taxes related to the investment in the properties of the UK. This is the biggest problem that is needed to be handled in a very sophisticated manner when buying properties in UK. There are indirect taxes which includes the stamp duty which is in the range of one to four percent of the purchase price of the properties. Then there is the other indirect tax which is the council tax, the rate of the tax is depending on the locality or the region where you are buying the property. This tax is for the local authorities of the cities.
Then there are three direct taxes which you need to pay if you are a resident of UK whereas the non residents can escape these three taxes. There is income tax that you need to pay to the government of UK if the value of the property that you have bought goes up and generates extra income for you. Then there is capital gain tax, which is if you are selling the property, the money you make, is subjected to taxes. There are rates for the capital gain tax which changes from year to year. Then the last one is the inheritance tax, if you have some inherited property in UK, you need to pay taxes to the government for the properties and same applies when you have bought a property. To tackle all this tax related issues along with the documentations and other legal work, you need to see an experienced lawyer who is working in the field of property law for a long time.
Finally, you need to understand why you want to invest in the properties in UK. The legal procedures vary according to the use of the property. The price of the lands and the properties also vary according to the use of the property. So, at first you need to make sure why you want to explore property investment opportunities in the UK capital.