Hi everyone, I can’t believe it’s Friday again – time really does go super quick in a pandemic…..
As you will all know, the Chancellor has given some SDLT help by increasing the threshold to £500k. It hasn’t removed the fee completely for second properties, but It has significantly lowered the amount needed to be paid.
This really does help, because the new rules will continue through until March 2021. This will allow investors to take advantage of the downturn, with time to monitor the market rather than rushing into decisions.
So how does that work with lenders regarding capital raisin?
I appreciate this sounds like a cracked record, but lenders are changing their appetite constantly. As we all know, we as individuals don’t always get the pick of the bunch when it comes to lenders – you and your property dictate your panel and some are restricting capital raising.
There are, however, lenders who will allow you to capital raise and what you as investors need to work out is the cost versus reward – is it worth borrowing in order to look at other opportunities?
Now is the time to look at your existing portfolio, and really look at the opportunities available
- Do you want to refinance now, or start looking at the options in 6-12 months? What do you think might happen in that time?
- What could you do as a ‘cash buyer’? Will capital raising and putting yourself in that position help you grow your portfolio?
- Could you take advantage of the market changes over the next 6 months? Especially with the SDLT holiday until the end of March 2021
- Could you use this time to diversify your portfolio? Do you think that for example HMOs or serviced accommodation could be more appealing over the next few years and if so, what can you do about it?
As sad as the current situation is, as an investor we must look at the opportunities– and how we can take advantage of those.
Good ground work is key to being in the position to act, or others will!