The best world wide value for money property and new council tax hike

Posted: 25/09/2012

According to the latest survey by HSBC, Orlando, USA is the best place to buy property when it comes to oversees investments. You can purchase a four bedroom villa with a large garden and the added luxury of a private swimming pool for an amazing £125,000! In comparison you would only be able to purchase a studio flat in the Swiss Alps with the same budget.

However, if you want to stick to Europe you may still get a decent bargain due to the euro zone crisis meaning you will get €8,563 extra with a £125,000 budget. A 5 bedroom home in Alicante, Spain can be purchased for an impressive £400,000 and more bargains can be found in Malaga too. Bodrum in Turkey and Faro in the Algarve also contain property worth investing in according to the global bank.

However, if you have £1 million to spend on a property or already own a property worth over £1 million, prepare yourself for a council tax hike thanks to the Coalition Government targeting the wealthy percentage of the population to help the country out of the recession.

The deputy Prime Minister Nick Clegg wants to create two or three new council tax bands at the top scale an as  alternative to the Liberal Democrats favoured mansion tax on homes worth £2 million and over which the Prime Minister David Cameron has denied. There are currently eight different bands where council tax is charged in England from Band A up to £40,000 to Band H which is over £320,000 and these bands have not changed since 1991 even though property prices have risen dramatically since then.

Although the Liberal Democrats still favour the mansion tax, the alternative is designed to target those whose property is now valued at £1 million and above which would prove more politically acceptable for the Conservatives than to tax people more with properties worth less than that.

Nick Clegg stated that, ‘ I don’t think its right that someone in a £4 million palace in the middle of London pays the same council tax as someone in a four bedroom family home elsewhere in London.’ Do you agree with this? A senior Liberal Democrat certainly does as he spoke to the Independent and said, ‘There is no reason that council tax would have to go up for everyone. It does not have to be uniform across bands. He continued, ‘Its very odd that people who have been lucky enough to be able to buy a large house enjoy a freeze, just as people who have a very small property.'

If you are a property investor, would you look further a field to places like Orlando to invest? Do you think Nick Clegg’s idea of adding extra tax bands for houses worth £1 million or more is a fair idea?

Amanda McGovern, Pali Ltd
www.paliltd.com

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(0) Comments property, investment, housing, council, tax, Government

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