For instance, the other day I saw an ad for a property with an asking price of GBP540k which claimed a yearly rental income of GBP37k (the building comprised several lodgings and commercial premises). The return rate there is 6.9%. If you tax income at the marginal rate (40%) you get a 4.1% return rate after tax. This doesn't include council tax or maintenance, but those would be added to the rent and would not accrue to the investors so they net out.
The point is that trying to extract more than, say, 5% nominal after-tax returns from property is simply not realistic. What? That's not enough for investors? Then that will depress the property price until the ratio is as they desire. It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris
What would happen is that stamp duty would apply on purchase and sale of "Units" as on conventional shares, I think.
There are two roles for current intermediaries. An estate agent brings Occupiers together with properties, and financial service providers bring Investors in property pools together with investments, make markets etc
Btw I don't think people realise how regressive UK Stamp Duty is for the average Joe Blows with chunky mortgage loans.
If you consider the amount of actual "Equity" people have in their homes the application of Stamp Duty to the gross sale price gives rise to outrageous rates of taxation applying down the average "chain", in comparison to the net proceeds which flow, particularly in the lower levels of the market where people are struggling "up the ladder" into second or third homes etc
