5 Property Tips For October 2006
Property news:
1) The UK's largest mortgage lender the Halifax has increased its forecast for house price growth in 2006 to 5%. This is an increase from the 3% they forecast at the beginning of the year. This is still below the long term average of 8% however it still proves that this year has been a successful one for homeowners in relation to the value of their homes.
2) For investors the capital gains tax allowance (CGT) is still currently £8800 per annum. This tax is charge by the Government on properties that are sold in the UK that are not the owners main residence. So for example if you bought an investment property for £100,000 and then sold it two years later for £120,000 the profit would be £20,000. The Government would then charge you CGT on the £20,000 less your £8800 allowance which would mean that £11,200 would be taxable.
3) In relation to point 2 above it should be noted that if any property is jointly owned then both halves of a couple can use their CGT allowance. Thus saving them from £17,600 of any profit being taxed.
4) Florida real estate prices have increased by over 100% in the last years. So maybe now is the time to invest in a property in the sunshine state especially as American interest rates are starting to drop.
5) The Hailfax has also revealed that around two and a half million homes the UK now face a potential inheritance liability of 40% on those estates that are above the current threshold of £285,000. Many agencies and lobby groups are trying to persuade the government to increase this to around £350,000 in the next budget. These parties claim that due to the massive increase in the house prices in the last decade the very people that were supposed to be excluded from this rich tax are now having to pay it !!
