Why is now the right time to invest in property

Buying property is one of the biggest financial investments that you will make, but with interest rates at an all-time low, rental demand going up and ever-increasing monthly rents, our advice would be to think about the long-term gains of property investment as there has never been a better time to invest!

Here’s why…

Increasing rental incomes and capital gains
Investing in buy-to-let properties will not only generate regular monthly returns, but there is also the opportunity to ‘grow’ your money by taking advantage of increasing property values which have increased by an average of 14.96% a year since 2008.

There is already a significant shortage of housing in the UK which coupled with the expanding population means that demand for housing will continue to rise, driving up the price of property for the foreseeable future. The property market can be volatile. but it bounces back quickly as property is always in demand. Overall it is a financially rewarding and exciting business and is now seen by many as the best way to provide long-term financial security and a consistent income even after you have retired.

Be your own boss
If you invest your money in stocks and shares, you are relying on other people to present you with a decent return on investment, but with property, you are in the driving seat – you can make all the decisions and have control over all of your returns.

You can decide whether the purchase price, rental income and potential for capital growth are acceptable, how much cash you’re going to put into the deposit and how you will structure your mortgage. You can also consider how you might improve the value of your property to maximise the rental income that it generates.

Once you have calculated the associated costs such as insurance, tax and maintenance, you will be able to work out what rental yield the property will generate. An average gross rental yield of 5-7% is about two times the dividend yield on UK stocks.

A safe investment
Having a physical asset such as a house gives a great sense of security as it is a tangible investment that you can build on to provide a lifetime of security in the form of a home or regular income for future generations. Plus, you have the option of selling your property if your circumstances change and you require the capital in the future.

Anyone can invest in property – you do not need vast amounts of knowledge or experience to make it a success. However, in order to minimise the risks, we would advise that you do plenty of research into the pros and cons of property investment, have a comprehensive budget of all of the costs involved and a solid investment strategy that you can use to guide you through the process.

 

If you have been considering buying your first buy-to-let property or expanding your investment property portfolio, our experienced Lettings team would be happy to offer any advice or answer your questions. You can contact Sam on 01903 756 688 or email samolliver@michaeljones.co.uk.

Alternatively, click here to find your local lettings office.


Content accurate at time of publishing.

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