chaval

Does anyone think we're in for a bit of a property boom next year ? What with the changes to SIPP's and A-Day ? With a 40% tax relief does that mean a 150k house will actually only cost the investor only 90k which in turn could mean that a 120k flat could go up to say 150k ??

Cheers

Amazulu

I think it will have a slightly positive effect (ie maybe stabilise prices) but the market is already overvalued & can't keep going up.

chaval

I sort of thought that if a current property is say 90k...on a BTL mortgage it might cost you 500pcm, and generate 500pcm. Now if someone with a SIPP can get the 40% relief, does that mean that until the property reaches say 150k+ it woulds still be a viable BTL purchase because the actual net cost to the investor would still remain at 90k ?

spottydog

Personally I think its unlikely to have a large affect due to the amount you would need in your pension to be able to include property there will onyl be a few people tht can afford it. If anything I think the most likely affect will be that the changes help keep prices steady since returns for BTL investors are already often lower than the interest rate being paid on the mortgage.