sales@thepropertyfox.co.uk 
With property investment still being a very lucrative option for many UK residents, how has the stamp duty “hike” impacted the cost for buying an investment property? Read on for an example! 
The strange thing is, that even though the government introduced a 3 % surcharge on second purchasers, ideally trying to stop investors hoovering up the bottom end of the market, thus attempting to get more first time buyers on board, the prices at the end of the market have continued to spiral upwards to their current record-breaking levels. There has certainly been more first time buyers in the market place and whilst investors are certainly not buying as much in Leicester as they were doing 4-5 years ago, we still see a good number of them buying property for rental purposes. 
 
 
 
So, if you’re fresh into this you may be wondering how much does it cost to get your first investment property? 
 
 
 
Let’s take a typical 2 bed terraced home, the staple diet for many investors across the city. Average prices now are not going to be short of £135,000 in the West of the city, around Fosse Road and Narborough Road, so let’s base our numbers on that. 
 
A purchase price of £135,000 will require a deposit of £33,750. You will then pay stamp duty of £4,250. Your solicitor for this type of purchase will be in the region of £1,200, you may have some mortgage arrangement fees and survey fees which could come in at around £750. We will assume that no additional survey is being had. 
 
That gives us a grand total of £39,950. You’ll have around £100,000 on a mortgage and be generating rental income in the region of £650 per calendar month, getting back around 19% per annum of that £39,950 you put into the property. 
 
Some people are interested in buying semi-detached houses for investment and we will look at how the costs can rack up if you do decide to go down that route instead in our next blog. 
 
 
For more information on this and anything else relating to the housing market just give us a call on 0116 3409989 or to find out a guide on your property's current value go to http://valuation.thepropertyfox.co.uk/ 
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