Richmond Market Still Performing Well
Wednesday 27 February 2019
Overall, the Richmond market is performing extremely well with a steady supply of properties coming to the market and plenty of willing purchasers still looking to buy.
We are getting plenty of comments and questions around the proposed changes to the tax system, and a lot of speculation on how that may, or may not, affect the current market trends.
Interesting to note; in recent years we have already had two major property tax changes as outlined herewith. Despite this, we have seen no reduction in trading in our local property market.
The changes that have already come into effect are that individuals need to pay tax on any profit on the property value when they sell, depending on when the property was bought;
- From the 29 March 2018, and you sell it within 5 years of buying it
- From the 1 October 2015 to the 28 March 2018 and you sell it within a 2-year period of buying it
But you won’t need to pay this tax if;
- The property is your main house/principal place of residence
- You inherited the property
- You own it because of a relationship break-up
As accountants often quote, ‘you only pay tax if you’re making money’ - we pay tax on our personal incomes but it doesn’t stop us from getting up and going to work. If we have to pay tax on our investment property, I don’t believe it will stop people from being involved. I believe property has always been, and will always remain, a great investment for anyone who wants to take the time to understand it properly.
We look forward to a strong and active market, so if you are thinking of buying or selling, don’t hesitate to contact any one of our Summit team.
