I don't think its going to work in realty On a serious note, the tenant will either pay increased rent and/or the seller will be hit with a 3% reduced price to cover new purchaser.

Well that is what I am going to do on newly acquired properties

 

Hi,
Agreed, this will have little effect on well worked out buy to lets!
Cheers
Steve

 

"Well that is what I am going to do on newly acquired properties"

Should have bought a WRX mate

 

Beginning of the end for the inflated buy to let market, there will be alot more to come in the years ahead, this is just the start. And no I am not a renter or a landlord thank god!

 

Exactly: no stamp duty, no CGT!

 

The details are different, but this was tried twice in Australia in recent years.

The latest one from 2010 was spoken about here:

http://www.dailytelegraph.com.au/pre...-1225865724962

The truth was a little less spectacular. Sellers simply chose not to sell, the government did not raise the taxation they thought they would, and eventually the real estate market had been skewed to the extent that supply of property onto the market slowed to a trickle.

The net result was prices actually increased. Supply and demand will do that. Lower supply sadly means competition to secure the little stock available. And if you have a population that is increasing, then the demand will just continue.

I dont mean to rain on anyones parade, but if you think you'll get bargains, yes, that may happen in the short term through people who are uninformed and who panic sell, but I fear in the long run, what will happen here in the UK will be no different to the supply and demand market basics that were seen in Victoria and NSW in Australia.

The NSW duty was abolished here:

http://www.theage.com.au/news/nation...748622665.html

and of course the government tries its best to put on a brave face, but it basically crippled the NSW economy.

I fully expect long term that prices will go up, and then the government will be repealing these policies eventually. If you can bag a bargain in the short term, more power to you.