Why UK taxes are good news for the property bond investor

Why UK taxes are good news for the property bond investor

Become a property bond investor, and you can potentially grow your money in bricks and mortar whilst avoiding UK property taxes.

Depending on the options a property bond investor chooses, they can sidestep what have been shown to be some of the highest property taxes in the world.

Recently the impartial independent fact checking charity Full Fact decided to look into whether the UK did indeed have the highest property taxes in the world. As well as recent raises in stamp duty by previous Chancellor George Osborne, they confirmed that the UK does indeed raise more in property taxes overall than any other developed country.

For investors that’s bad news, especially those looking for returns from a very expensive buy to let market. Property bond yields, however, may be the answer investors are looking for when they want to grow their money in the world of bricks and mortar.

How a property bond investor could seriously grow their savings

Part of the reason why the property bond sector looks so attractive for people looking to grow their savings is the rippling effect such high taxes have had on the buy to let market. Those very changes to stamp duty and an end to tax relief for mortgage interest costs has seen being a landlord with a second home become more expensive than ever before.

There may be another worry looming around the corner for landlords, too. Since the new tax changes have come into effect one in four people are looking to sell their homes and get into other investment opportunities such as the property bond market to grow their money.

Pete Redfern, chief executive of Taylor Wimpey, one of the UK’s biggest builders has called on the government to shift stamp duty to sellers rather than buyers to help people enter the market. An interesting proposal, but one that may potentially lock landlords into buy to let as they look to sell their home and recoup their savings.

Take advantage of high fixed return property bond yields

It’s just one of the many ideas mooted by those within the housing industry to try and navigate their way through stamp duty changes and tax amendments that are helping to make potential landlords think twice about buy to let.

The reality is though that, after the autumn statement, the tax burden doesn’t look like it’ll be lifted any time in the near future which is a real issue for those that have specifically invested in buy to let and property to take advantage of rental yields.

Changes to letting agents’ fees are also set to hit landlords hard. That majority of these taxes, though, could be navigated effortlessly with a high-yielding property bond solution that grows people’s savings in a secure way.

Depending on a property bond investor chooses, they could earn people potential returns of 42.5% in an asset-backed, fixed-return bond solution in a government-backed sector. Contact the Heron Global Partners team today to find out more.

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