We are still open as usual, despite the weather causing problems.
If you do happen to visit the office, please take care on the pavements as they are very icy still.
Friday 10 December 2010
Tuesday 10 August 2010
Ten Top Tips for Landlords
Landlords could be set to benefit from increased rental income thanks to rising student numbers combining with a shortfall in suitable property in Scotland but, as tempting as this may sound to potential property investors, there are many legal implications of owning a House in Multiple Occupation (HMO) - which is where HMO Scotland can help.
HMO Scotland manages licence applications and removes the potential stress of owning HMO properties, which are regularly subject to change. As well as guiding and advising landlords, HMO Scotland is responsible for monitoring the council approved methods for upgrading HMO properties, so has its finger on the pulse where legislation and the resulting implications for HMO landlords are concerned.
So, click here for our Ten Top Tips for stress-free navigation of the HMO landscape.
HMO Scotland manages licence applications and removes the potential stress of owning HMO properties, which are regularly subject to change. As well as guiding and advising landlords, HMO Scotland is responsible for monitoring the council approved methods for upgrading HMO properties, so has its finger on the pulse where legislation and the resulting implications for HMO landlords are concerned.
So, click here for our Ten Top Tips for stress-free navigation of the HMO landscape.
Tuesday 22 June 2010
28% Capital Gains Tax - Whatever Next!
So the new Chancellor has stood up on the bridge and pushed on the big lever labeled "Capital Gains Tax", moving it forward to read "28%", but hasn't pressed the "taper relief" button. So what's going to be the effect down in the engine room?
Well from the property point of view, probably not that much. The rise in CGT is less than the intimated hike of 40-50% being suggested just a few weeks ago and with the change being effective from midnight tonight, there won't be many sales being completed to try to beat the deadline. If anything, the deadline is more interesting than the rate change. If George Osborne had introduced a time delay then we may well have seen some speculative investors looking to offload their properties thereby increasing the supply of properties available to buy and putting downward pressure on housing inflation. This is something the new government had suggested in it's manifesto but this part of the budget doesn't tally with that.
Nevertheless, a steadily increasing housing market is good news for the majority of investors who plan to hold their property assets for a longer term. And history tells us that this new rate will most likely change again. Why? Because CGT is less than 50 years old, but since it's inception in the 1960s the regime has been changed a number of times.
It has been at the same rate as income tax, lower than income tax, inflation allowances have been introduced, inflation allowances have been withdrawn, "taper" relief given according to the time an asset is held and different rules applied for different assets. So if you're not planning on selling before April 2015 (just after the next pre-general election budget!) then today's announcement may well be somewhat irrelevant to you.
What this new rate does tell us if we read between the lines is that this government seems to be moving towards a self-funding pensions system. Chancellor Osborne opted to keep £10,100 per year CGT-free allowance, despite concerns that this would be cut dramatically. And prior to the flat CGT rate of 18% rate introduced in April 2008, the lowest rate you could hope to pay was 24% for assets held longer than 10 years, with the top rate at 40%. So a flat rate of 28% which is supposedly part of one of the toughest budgets seen in years seems comparatively low.
Perhaps the most interesting outcome of today is John Redwood's recommendations for CGT. In a letter to Mr Osborne, the ex-cabinet minister and Chairman of the Economic Competitiveness Group who is also one of the key tory tax advisors to the new chancellor, has urged for a taper relief system to be introduced which would see assets held for five or more attracting a CGT rate of "zero"!
If you had any thoughts about selling, this particular snippet might just cause you to re-assess your strategy. It may also cause many investors to enter the private renting sector to take advantage of the rising market, especially if there is strong speculation that the profits from doing so could soon be tax free. HMS Goverment's course and speed is certainly a little less foggy than it was this morning!
Well from the property point of view, probably not that much. The rise in CGT is less than the intimated hike of 40-50% being suggested just a few weeks ago and with the change being effective from midnight tonight, there won't be many sales being completed to try to beat the deadline. If anything, the deadline is more interesting than the rate change. If George Osborne had introduced a time delay then we may well have seen some speculative investors looking to offload their properties thereby increasing the supply of properties available to buy and putting downward pressure on housing inflation. This is something the new government had suggested in it's manifesto but this part of the budget doesn't tally with that.
Nevertheless, a steadily increasing housing market is good news for the majority of investors who plan to hold their property assets for a longer term. And history tells us that this new rate will most likely change again. Why? Because CGT is less than 50 years old, but since it's inception in the 1960s the regime has been changed a number of times.
It has been at the same rate as income tax, lower than income tax, inflation allowances have been introduced, inflation allowances have been withdrawn, "taper" relief given according to the time an asset is held and different rules applied for different assets. So if you're not planning on selling before April 2015 (just after the next pre-general election budget!) then today's announcement may well be somewhat irrelevant to you.
What this new rate does tell us if we read between the lines is that this government seems to be moving towards a self-funding pensions system. Chancellor Osborne opted to keep £10,100 per year CGT-free allowance, despite concerns that this would be cut dramatically. And prior to the flat CGT rate of 18% rate introduced in April 2008, the lowest rate you could hope to pay was 24% for assets held longer than 10 years, with the top rate at 40%. So a flat rate of 28% which is supposedly part of one of the toughest budgets seen in years seems comparatively low.
Perhaps the most interesting outcome of today is John Redwood's recommendations for CGT. In a letter to Mr Osborne, the ex-cabinet minister and Chairman of the Economic Competitiveness Group who is also one of the key tory tax advisors to the new chancellor, has urged for a taper relief system to be introduced which would see assets held for five or more attracting a CGT rate of "zero"!
If you had any thoughts about selling, this particular snippet might just cause you to re-assess your strategy. It may also cause many investors to enter the private renting sector to take advantage of the rising market, especially if there is strong speculation that the profits from doing so could soon be tax free. HMS Goverment's course and speed is certainly a little less foggy than it was this morning!
Thursday 29 April 2010
House price inflation hits 10.5%, says the Nationwide
The Nationwide building society has reported that house prices increased by 1% during the month of April, with the cost of the average home now being £167,802. According to the building society this increase means that UK house prices have risen by 10.5% in the year to the end of April.
The following link provides a full summary of the Nationwide's latest house price figures:
http://news.bbc.co.uk/1/hi/business/10090047.stm
The following link provides a full summary of the Nationwide's latest house price figures:
http://news.bbc.co.uk/1/hi/business/10090047.stm
Thursday 15 April 2010
Chamber of Commerce Golf Outing.
Tuesday saw the first of this year's Edinburgh Chamber of Commerce Golf Club outings which was held at Dunbar Golf Course. All those that participated had a great day and found the course to be in excellent condition considering the damage that had been caused by the recent storms. The winner of the days outing was our very own Chris Laidlaw.Our last Investor Newsletter offered the opportunity for our clients to join us for a game of golf on one of the Chamber outings. So, if you'd like the chance to test your skills at some of the best courses that Scotland has to offer, please email steve@cullenproperty.com giving your first second and third choices from the following table:
Events are organised by the Edinburgh Chamber of Commerce Golf Club so you will need to be a member at a recognised club and have a handicap of 18 or less. The round is followed by a meal and prize giving and is a thoroughly enjoyable day out so we hope you'll be able to join us on the first tee in 2010!
Please note: we only have two guest invitations available per event and will unfortunately have to apply a "first come, first served" policy.
Please note: we only have two guest invitations available per event and will unfortunately have to apply a "first come, first served" policy.
Friday 9 April 2010
UK interest rates remain on hold.
Yesterday the Bank of England's Monetary Policy Committee (MPC) announced that interest rates were to remain at a record low of 0.5% for a fourteenth consecutive month.
It is likely that as a result of this descision, mortgage rates will remain as they are and we will continue to see buy to let rates of between 4.5% to 6% with a minimum deposit of 30% being required.
This week also saw the Halifax Building Society announce that the average house price in the UK has risen by 1.1% for the month of March. Martin Ellis, economist for the Halifax said: "An increase in the number of properties available for sale is begining to reduce the imbalance between supply and demand. This should help to contain the upward pressure on house prices."
We have seen first hand an increase of properties being offered for sale within the Edinburgh market. As a result we are seeing an increase in properties that are offering a good investment oppotunity.
To read more regarding the outcome of the MPC's meeting, the link to the following BBC article provides an overview: http://news.bbc.co.uk/1/hi/business/8609259.stm
The minutes from the Bank of England's Monetary Policy Committee meeting held on the 7th & 8th of April will be available as of the 21st of April and can be viewed by using the following link: http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2010/index.htm
Tuesday 23 March 2010
Landlord Registration
The City of Edinburgh Council is contacting all landlords in the City whose Landlord Registration is coming up for renewal in May 2010. Many landlords have not done this before since, if you are a HMO landlord, Council Officials will have done the entry for you.
Need help? Contact Malcolm at malcolm@cullenproperty.com.
Friday 12 March 2010
Investment in Edinburgh
February saw the introduction of our new company branding which was presented at a launch party for clients and friends along with our new web-site www.cullenproperty.com. Malcolm our MD gave a talk on the current market place, the full script of which can be viewed at new web page Investment Article.
You may have been confused lately by the many conflicting news articles analysing the property market; Bill Jamieson at the Scotsman has written an article which we feel gives a very useful summary: click for article.
We are now into the third month of 2010 and hopefully winter will soon be behind us. Certainly one would think that spring is with us judging by the rush of properties coming onto the market. Time will tell how the market will cope with the change but well presented properties in good locations are selling very well now and will continue to do so. There never was a serious downturn in value in the City; Edinburgh's property market handled the downturn by a severe reduction of quality property coming to the market and, as a result, a drop in values never really established itself. Most vendors had a choice and many chose to wait for better times. So, here's to a successful spring!
You may have been confused lately by the many conflicting news articles analysing the property market; Bill Jamieson at the Scotsman has written an article which we feel gives a very useful summary: click for article.
We are now into the third month of 2010 and hopefully winter will soon be behind us. Certainly one would think that spring is with us judging by the rush of properties coming onto the market. Time will tell how the market will cope with the change but well presented properties in good locations are selling very well now and will continue to do so. There never was a serious downturn in value in the City; Edinburgh's property market handled the downturn by a severe reduction of quality property coming to the market and, as a result, a drop in values never really established itself. Most vendors had a choice and many chose to wait for better times. So, here's to a successful spring!
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