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Budget Cheer For UK Property Buyers
April 30, 2009Article by Ray Withers
Buying below-market-value property in the UK is still an attractive proposition as the Chancellor Alastair Darling has extended the Stamp Duty exemption in The Budget 2009.Stamp Duty is a tax buyers pay on property – but for residential property valued at £175,000 or less, the duty is waived until December 31. Stamp Duty is generally set at 1% on a £175,000 purchase, so the exemption represents a cash saving of £1,750 for UK property investors.
The exemption applies to purchases that are completed on or before December 31, 2009.
For buyers looking for discounted UK property, consultants Property Frontiers is offering an exclusive deal on flats at Merchants Court, Wavertree, Liverpool, built by a leading UK developer just a few minutes walk from Wavertree High Street and a short train ride from Liverpool city centre.Prices start at £89,960 for a ground floor flat with a current valuation of £119,950 and an estimated gross rental return of about £650 per month.
Merchants Court, comprises 34 two-bedroom apartments arranged over three floors. The developers were a major UK company that needs to grab some money back from Merchants Court to ease their cash flow.
Each apartment has double-glazed windows and comes with a quality fitted kitchen with built in electric oven, hood and hob, standard washer and dryer laundry facilities and electric showers in the bathroom suites. The development is also very secure in a private gated setting with phone entry system.
These flats are even ideal for first-time-buyers who need to put down an average 24% deposit to gain the best mortgage rates – and as any mortgage offer is based on the buying price if it is less than the valuation, they can make an instant profit when turning the key in the door for the first time.
Working out the deposit at 24% means the buyer needs £21,590 and a mortgage of £68,370, which makes the deal much more affordable than the £44,000 deposit required for the average priced UK flat – which stands at £183,000.These figures show what a phenomenal bargain below market value property in Liverpool can be for investors and first time buyers.