The demand for housing in the UK has certainly increased property investment popularity, but what are the other benefits driving people to take the risk?
Over recent years the demand for rental accommodation has been on the increase and is set to keep rising. The ever-growing gap between income and house prices has broadened over time, seeing home ownership continue to remain out of reach for many. With more people choosing to reside and rent in the UK, the high demand for property has resulted in less available and inflated rental prices in most areas. Investing in property now would mean taking advantage of higher rental returns and strong market demand.
Currently in the United Kingdom interest rates are incredibly low making the opportunity to borrow and invest cheaper. These favourable conditions, along with higher rental charges have seen many landlords achieve far better returns on their money making it a picture. A perfect time to invest.
A real benefit of property investment is the opportunity for capital growth. The amount of capital growth you can expect is dependent on several factors but particularly on market conditions and the number of years you intend for the property to remain in your ownership. Where possible, be selective in your choice of property and opt for the most desirable location you can afford, then you should see the value of your investment increase. If you are an investor who does not seek immediate monetary rewards, investing in a property long term is a wonderful asset to pass on to loved ones.
Any time you are investing your hard-earned money it can often feel like a slightly scary process and you want to know that the return will be worth it. Many people choose to invest in the property sector as they feel it is less of a financial risk because the investment is more tangible. Being able to physically see your investment can give a greater amount of control which is not possible with other investments such as stocks and shares or bonds, for example.
Investing in property can be exciting, but just like any investment decision it should be well planned, with every element considered. Research is always important when weighing up both the advantages and disadvantages that property investment can bring. Keep your investing experience as straightforward as possible. Ask questions and confide in professionals to give you valuable information, allowing you to feel knowledgeable and confident while opting for a property investment that is best for you. It must be remembered that property investment is not risk free.Back to news