The stamp duty hike from April 2016 means there will be an extra 3 per cent to pay on all additional property purchases: yet another reason to start seriously thinking about how to save money as a buy to sell or buy to let investor.
After 1 April this year, if you buy a second home or investment property, you will be liable for an additional 3 per cent in stamp duty. It means that properties currently free from stamp duty will attract a 3 per cent charge; properties between £125,001 and £250,000 will be charged at 5 per cent (rather than 2 per cent); between £250,001 and £925,000 you will have to pay 8 per cent in stamp duty and up to £1.5 million, 13 per cent.
So, how to keep costs down when investing in property? One is to opt for electric heating.
Because there’s no need for pipework and flues, and it is basically a case of fixing to the mains, electric heating is very much a cost effective option when it comes to installation: much more so than gas. Also there is no effect on the property’s insulation like there is with gas due to the absence of flues and venting.
Additionally, over time the maintenance costs will work out more in your favour. There are no harmful gases so there is no need for annual safety checks. Virtually no moving parts in the electric boiler also means the likelihood for breakdowns is vastly reduced and the average life expectancy is 15 years rather than 10 for a gas boiler.
If you would like to find out more about how electric central heating and electric boilers could benefit you in your mission to cut costs and get in control of potential profit losses in property investment, get in touch.