Buy-to-let buyers are well advised to invest in properties in the UK rather than overseas locations, with many already taking up the trend, the Assetz property investment company has found.
The company draws attention to the "straightforward" legal environment in the UK, whereas many overseas holiday home buyers have found themselves befuddled by the legal complexities of a foreign country, while some have even had their development plans scuppered after discovering they had failed to comply with regulations.
Moreover, UK holiday homes, which have the added advantage of offering a second home to escape to whenever the buyer needs a break, can earn their owners as much in a week as they would make on a normal buy-to-let contract, Assetz claims.
There are also tax advantages – as long as they are let for at least 70 days per year and available to let for 140 days, holiday homes are classified as commercial properties, with capital gains tax of just ten per cent.
Meanwhile, rental demand for regular, everyday homes grew at its fastest rate in nine years in the final quarter of 2006, according to the Royal Institution of Chartered Surveyors.To learn more about buy-to-let mortgages, click here.
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