Why now is a good time to invest in property

The property team at Voisin Law argue that Jersey real estate offers an attractive investment 

In light of the current economic climate, low interest rates being offered by banks on deposits are leading savvy investors to look elsewhere to get a better return on their savings, many choosing to invest in property. 

Jersey is certainly an attractive proposition for a property investor – the market is seen to be more stable than the UK property market, with the proportion of properties experiencing negative equity being considerably lower. This is attracting overseas investors to the island especially due to the fact that a purchaser of a share transfer property does not need housing qualifications to buy (as the purchase is of shares in the company holding the property, together with the enjoyment of the property which may be let to a person with housing qualifications, as opposed to a freehold transaction where the land itself is purchased which requires housing consent). With the number of apartments being built and already developed on the island, the buy-to-let market is thriving. 

Islanders are finding that the current market is very much a buyers market. Buyers who have finances in place and are able to move quickly are finding themselves in an exceptionally strong position and are purchasing properties well below the asking prices. 

In addition, the Land Transaction Tax (Jersey) Law, a tax on share transfer properties at the same rates of tax as freehold properties, is due to come into force in the forthcoming months. If you are considering purchasing a share transfer property, then now could be the time to do it in order to take advantage of the short amount of time for which there will be no tax payable on a share transfer purchase. 

The fact that banks are being more cautious does not mean they aren’t lending. Banks are offering competitive rates to those who have a large deposit. The best rates are being offered to people borrowing 60% of the purchase price, however there are also good rates being offered to people with smaller deposits, so it is definitely worth researching the rates that are being offered and shopping around. 

Now is certainly the time to start assessing your savings and looking at whether you could be getting a better return elsewhere. If you have a cash deposit and are in a position to negotiate on the purchase price, you could see highly rewarding returns on your investment. With the market already beginning to pick up and the banks offering good rates of interest to borrowers with large deposits, the opportunities are certainly out there. 

If you wish to discuss any property related matter or get a quote, please email the property team:

andrewlequesne@voisinlaw.com

johnkendall@voisinlaw.com

or call them on 01534 500351.