Let’s begin by looking at the current situation. The property market has undergone great changes in terms of demand and supply plus the affordability issues. Because of the current over supply issues , developers are now offering good packages for easy entry cost for buyers: – No down payment – Cash back – Free legal fees, stamp duties on loan agreements. Some even absorb the … Continue reading Should you buy new landed or non-landed property?
To avoid paying out REN’s commissions, owners will try to sell on their own. However, doing it on their own can be quite challenging in getting buyers – RENs have the marketing reach that owners do not have. RENs (unlike owners) are more willing to spend a lot on marketing to get buyers as they will get commissions for every sale. Secondly, owners do not … Continue reading Mistakes made by owners when selling their properties
The UK property stamp duty ranges from 3-5%. Purchase price (in sterling pounds) & the applicable rates: Up to 125,000 3% over 125,000 to 250,000 5% over 250,000 to 925,000 8% over 925,000 to 1.5 million 13% over 1.5 Million 15% Stamp duty is exempted for the first property. A Malaysian buying his or her first property in the UK and having a property in … Continue reading UK Property Stamp Duty
Calculation of income tax on rental income is based on the yearly rental income minus deductible expenses*. Any profit derived will be set off against your personal allowance of ￡11,500. The balance (taxable income) is then subjected to income tax of 20%. Example 1: You purchase a 1-bed unit for ￡105,000 and rent it for ￡625 each month. You pay a letting agent 6% of … Continue reading UK Income Tax on Rental Income
Capital Gains Tax is a tax on the gain you make when you sell your UK property (You need to let Her Majesty’s Revenue and Customs (HRMC) know of your property disposal). The 2018/2019 Capital Gains tax rate is 18% for individual and 20% for company. The Capital Gains tax-free allowance is￡11,700. Joint owners who are married will each be entitled to the tax free … Continue reading UK Tax – Capital Gains on Disposal of Residential Property
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has passed away. The standard Inheritance Tax rate is 40% (additional ￡175,000 allowance is given from 2020). The UK inheritance tax allowance is £325,000. Example: Estate value £500,000 Less: Inheritance tax-free allowance £325,000 Taxable inheritance £175,000 The Inheritance Tax charged will be 40% x £175,000. The payable amount will … Continue reading UK Inheritance Tax
You are far away in Malaysia and your property is in the UK , now who is going to do these for you: find tenants for you collect the rental (ensure no arrears) manage your property at an acceptable level and safe standard which would include any repairs to be made Do not worry. In the UK, the Letting Agent will be doing all the above … Continue reading Managing your UK property
In March 2016 ANZ Banking Group (one of Australia’s big four) closed their doors to foreign buyers. This was closely followed by Westpac, and then all other Australian banks. Thousands of international buyers were left without the finance to settle on purchases entered into prior to the changes. Those affected had to source other funds or else forego their 10% down-payment. As yet this situation remains … Continue reading 5 solutions to finance your Australian property
Many of us dream of sending our children to study in the best schools and universities around the world, but financially it can seem far out of reach. In this article I explain a tried and tested way to use property to fund your children’s (or grandchildren’s) university education overseas. How much does it cost to study abroad? We’ve crunched the numbers and here is … Continue reading How to fund your children’s/grand children(s) university education overseas
From my interactions with potential buyers of new properties, many of them will immediately get turned off once they are told it is a leasehold property. They are only interested in a freehold property. Let’s look at why leasehold properties are perceived as not as good as freehold: 1. They are a bit difficult to sell once it goes past the 30 years tenure (normal … Continue reading Leasehold or freehold property?