Potential investors and second home buyers hoping for a slice of the Wimbledon market can benefit from slower price growth, which effectively cancels out the higher cost of stamp duty.
According to Private Finance, the extra stamp duty costs for buyers of high-value second homes are absorbed by the potential savings available as a result of slower property price growth.
On a second home property valued at £1.121million, for example, the cost of stamp duty has risen by £33,639 since the additional 3% stamp duty surcharge was introduced in April 2016. However, research by Private Finance reveals that buyers can benefit from slowing property price rises, a factor partly caused by the introduction of the extra stamp duty on second homes.
This is positive news for potential second home buyers and investors in Wimbledon and other parts of prime London.
Director of Private Finance, Shaun Church, noted: “If there is one silver lining for would-be buyers and investors, it’s that slower growth of high-value property prices has had a positive impact on affordability. A buyer today can pay markedly less for a high-value property at the top end of the ladder than if growth had kept pace with the rest of the market, making it easier to absorb any extra Stamp Duty fees.”
Multiple stamp duty changes have been brought in in recent years, affecting the prime London market in particular. However, potential investors and second home buyers looking to purchase property in Wimbledon can benefit from the potential savings involved.
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