In the ever-evolving landscape of real estate, strategic decisions can significantly impact your investment journey. Over the past year, a notable trend has emerged among our clients—opting for portfolio acquisitions instead of individual properties. This shift was catalyzed by the increase in Additional Dwelling Supplement (ADS) in Scotland to 6% last December.
The game-changing advantage? Purchasing six or more properties from the same seller grants exemption from both Land and Buildings Transaction Tax (LBTT) and ADS. This exemption not only reduces upfront costs but also opens doors to financial incentives. For savvy investors, acquiring portfolios at a discounted rate can lead to further benefits. Some lenders even accept mortgage deposits as low as 10% when a portfolio is purchased at a discount, providing a unique opportunity to expand property portfolios at an accelerated rate.
This strategic approach has empowered our clients to navigate market challenges with a bold vision for growth. By leveraging these opportunities, they’ve not only optimized their investment portfolios but have also set a precedent for smart, forward-thinking real estate decisions. As the landscape continues to evolve, considering the advantages of portfolio acquisitions proves to be a key consideration for investors seeking to maximize gains and foster rapid portfolio expansion.
