In protest at Chancellor George Osborne’s “landlord taxes” investors Marco Robinson and Simon Paul are running a competition to give away the property to a luck winner.
The £110,000 Manchester flat, they say, will be given away in their stand against recent stamp duty tax rises.
The lucky winner will be given the two bedroom fully furnished property in Manchester mortgage free along with its current rental income of £6,500 guaranteed for five years.
Mr Robinson, a partner with Simon Paul in their company Wealth Creation UK Ltd, and who has written a book on property investing entitled “The Financial Freedom Guarantee” – has said:
“George Osborne’s new stamp duty law is a blatant attempt to cash-in on a booming market. But it is badly-thought out and utterly pointless. It is doing all it can to crush entrepreneurial activity in what is a fantastically rewarding sector.”
Last year the Chancellor introduced a 3 per cent surcharge on all buy-to-let properties and second homes which became effective 1st April.
An investor buying an average £200,000 buy-to-let before the change was announced would pay stamp duty of £1,500, but this will now be £7500 – 3 per cent on the first £125,000 and 5 per cent on the amount between £125,001 and £250,000.
In addition to the 3% surcharge on stamp duty, the Chancellor has made minor adjustments to the wear and tear allowance and capital gains tax landlords will pay, and a major change affecting tax relief available to landlords on mortgage interest payments.
The changes have prompted many commentators to predict the death of the buy-to-let investing, or at least removing the potential to make sort-term profit in buy-to-let, but Me Robinson says:
“I don’t agree that it the ultimate death knell of buy-to-let activity. That’s why I am giving away a rental-market house. Ideally, I’d like to put a buy-to-let investor on the first rung of what is a fantastic and hugely rewarding ladder which can lead to financial freedom. I am doing it to underline that buy-to-let is a superb investment – as long as it is handled correctly.”
“By giving away part of my property empire I am putting my money where my mouth is. I will be proving that despite George’s tax laws, buy-to-let is a key investment opportunity. The Government should be doing more to encourage people to invest in property as it still is the path to gaining financial freedom. I am living proof that the model works,” he told the Daily Mail.
Entry to the competition is open to anyone prepared to play a game found on Mr Robinson’s Twitter page @marcorobinson7
Millionaire property developers giving away Manchester flat https://t.co/8wXtJY8oaV
— LandlordZONE (@LandlordZONE) May 3, 2016