Why invest in property?
Investing in property usually involves the purchase of residential property with a view to letting it out, achieving a rental income and thus a return on the money invested. This return, if you get your choice of property right, should be more profitable and secure than most other forms of investment. Certainly there is no doubt that property investment and specifically the purchase of buy-to-let flats and houses is currently one of the most talked about financial topics, both in the press, online and even ‘down the pub’.
The pattern of UK property ownership has changed dramatically in recent years, with fewer people now able to afford the purchase of a property as their main home, so the rental market has grown rapidly. This trend is now predicted to steadily accelerate for a variety of reasons.
There is a lack of properties being built creating a supply problem. At the same time there is an increase in the number of homes needed. This is because of both an increase in the population generally and a growing requirement for ‘single person’ households as people are getting married later and living longer, often on their own in later years. Furthermore mortgage borrowing has become more difficult and the deposits required in order to obtain mortgages are larger than in previous times.
So the UK property market faces a ‘perfect storm’. Lack of supply and increasing demand. Add to this mix a new breed of investor, the ‘baby boomers’ looking for a safe haven for their newly acquired pension pots which from April 2015 they can do with as they please and it is clear that the UK property market is a very exciting place to be investing right now.
Of course, as with all forms of investment, there are risks. Rentals can fall as well as rise. Property prices can fall and it must be remembered that whilst prices have risen considerably in the last few years they fell dramatically during the economic crisis of 2007-2009, having risen during the previous decade. But the overall long-term trend is up, whichever figures or surveys you consult, making property a great investment for the future.
And the prospect for rental prices looks good. At the current rate of house building it will be many years, if at all, that demand can match supply, so the basic economics of buy-to-let seems a sound investment decision.
So how to access this exciting and potentially profitable market? Well of course you could just buy a house, rent it out and sit back and count the money! Sounds easy. But there are many pitfalls for the inexperienced investor. And this is where we at CXG can help. With our years of experience we can advise you what to buy and where to buy, ensure that you buy at the right price and make sure the purchase goes smoothly. We can then manage the property for you with our skilled team of administrators, letting and maintenance staff, making your buy-to-let investment a profitable and stress-free experience.
So why not join our growing band of buy-to-let landlords and secure your future prosperity?
Contact us now and start your buy-to-let property journey. You won’t regret it!