What the autumn statement means for your buy to let or property bond
Last year’s autumn statement – the first by Chancellor Philip Hammond – showed exactly why interest in a property bond is so high amongst investors.
When previous Chancellor George Osborne was in office, he raised stamp duty and was accused of ‘targeting landlords’. It was one of the factors that boosted enquiries for property bond availability. Many investors looked for other ways to grow their money through bricks and mortar as an alternative to buy to let.
Many existing landlords and potential new ones had their fingers crossed that Philip Hammond would reverse Osborne’s buy to let measures. Instead, new legislation introduced by Hammond has made the humble property bond look more attractive than ever before.
How low entry level property bond costs can boost investor savings
The right property bond option can help investors to earn up to 42.5% depending on the choices they make. Meanwhile, investments available through Heron Global Partners are also fixed-term and asset-backed with regular payment options.
And, with Philip Hammond ordering that letting agents’ fees are to be banned “as soon as possible”, there’s another potential stumbling block for landlords looking to make good returns from a buy to let investment. This could mean that landlords have to pay the fees themselves, or cope by putting rents up. Neither option sounds too attractive from a landlord’s perspective.
Most disappointing for buy to let landlords and those looking to invest in a second property is that Osborne’s introductions remained untouched. That leaves the future of buy to let as an investment opportunity rather cloudy. People looking to get into the property market for the potential to earn high yields may need to look elsewhere.
Buying to let is still a way for investors to make money, but that’s become unquestionably harder over the last couple of years. And with tougher mortgage checks set to be introduced for people wanting to buy a second home, a property bond may very well be the best way for investors to grow their savings.
Getting potentially large returns from low property bond yields
Of course, this is all headline news. But to put a real face to the changes, consider the story of Phil Stewardson and his brother. Both are buy to let investors who recently told the Telegraph they feel the government has seriously let them down.
The Stewardsons are just part of a wave of landlords who feel the same. No one wants to feel that they are essentially being farmed for profits and tax by the Chancellor. In many cases, their love for all things property-based is waning.
One in four landlords are, in fact, selling their properties as a result to the changes, taking their money elsewhere. Personally, we feel that the best alternative is a property bond, which allows investors to get fixed returns while keeping their money in a sector they know and love.
If you’d like to learn more about property bond availability, contact Heron Global Partners today. You could earn potential returns of 42.5% (depending on your options) in an asset-backed, fixed-return way.