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  • Scottish PRS

    ADS increase to 4%

    The Cabinet Secretary for Finance, Economy and Fair Work, Derek Mackay, has proposed increasing the rate of ADS from 3% to 4%. If approved by the Scottish Parliament, this will take effect from 25 January 2019.

    ADS rates for transactions on or after 25 January 2019

    ADS is 4% of the ‘relevant consideration’ (usually the purchase price).

    ADS rates for transactions prior to 25 January 2019

    ADS is 3% of the ‘relevant consideration’ (usually the purchase price).

    Visit Government website to find out more

    75% LTV = 29% deposit

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    Sorry, could you expand on that ? I've also got my eye on ADS for near future purchases.

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    The previous link gives quite a lot of information. This is an additional cost to the BTL investor. £100k house that requires a 25% deposit, actually requires 25% (£25k) + 4%(£4k) = 29% (£29k) deposit. So a cost increase of £1k or (1%). Looks to me like it will be happening on Friday - https://sp-bpr-en-prod-cdnep.azureedge.ne...2019R1.pdf

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    Right, the anti-landlord wave continues...4% ouch.

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    For those that are looking to source below market deals and investments to combat this increase just let me know. I have a property for sale at £25k below home report value in Leith in Edinburgh. Looking for £150k and valued this week at £175,000. If of interest feel free to get in touch. mark@cp1solutions.com. 

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    The 4% coupled with rent controls, and other new rules means there is no room for error for landlords up north !

    I think I read on here there was a net sell-off in Scotland of BTL but that may be a combination of above plus the phase out of mortgage interest relief as multi-portfolio

    landlords are seeing things no longer stack up. Even with this, I think the Scottish residential market has not run out of steam with some flats in an area I'm looking at selling

    in under a month with under-supply in that area.

    Capital growth however pales in comparison to my what my friend bought just outside London in 2012 for the same money down.

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    Yes, Edinburgh can be very good for capital growth, but pretty poor for yield.

    Coming up with deposits is a real struggle, even with a decent paying job and a few properties in the portfolio. It gets worse the more expensive the property, when adding in another 4% of ‘dead’ money.

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