Overseas Property Market Should Thank The UK Budget
So the UK’s Budget has been revealed, and its fairly neutral. In regards to property not much has changed, other than a 15% stamp duty tax imposed on homes with a value over £500,000 which are purchased through companies. Away from than that there has been no other changes towards stamp duty levels, which has to be looked at in a positive light.
The Budget did make some changes in regards to pensions, which in this financially difficult could be very timely and hugely beneficial. Creating a situation where a higher number of British expatriates invest in foreign property.
In short anyone with a pension will have more freedom, and won’t have to wait till they are at pension age to claim it. Moreover, they will not be forced to purchase an annuity with their savings.
Many dream of retiring abroad
What this has done is make tax-free ISA’s look even more attractive, and it may mean more British expatriates invest in foreign property. This could be a popular choice among those reaching their retirement ages, especially since a large percentage usually have the desire to retire abroad.
The undeniable facts are that maximum gains are what people look for when they invest, it is for this reason many end up choosing the overseas property market. As such more and more overseas property buyers are of the more mature generation. However, this is also an option for younger Brits who have been priced out of their local property markets.
Opportunities could rise in the UK
This increased freedom should be celebrated, since the money that has been saved is yours and it is you that should decide how best to make use of it. There is really no point in the Government trying to control pensions when individuals are entitled to their money.
Yes it is true that the Government do not want people to spend their pensions recklessly, but on the other hand everyone should have the choice of when they can take their money. After all opportunities and hard times do not come when its the most convenient, and former is very true of the overseas property market which the current pension rule change will help affect for the better as more British expatriates invest in foreign property.
The only problem the Government will have is trying to make the UK property market appealing to those overseas so that they invest. If many do invest in the overseas property market there could be opportunities rising on our own doorsteps.