When you hear the word ‘investment’, the property market is one of the first markets to mind. Property investment is not a new idea! Investing your finances into houses and commercial properties has proven incredibly rewarding over many years, with countless investors making a full time living as landlords. With that being said, there is new accessibility to affordable shares in the stock market for regular people. The rise in popularity of buying business shares may make it seem like the property market has lost its value and appeal, but this is not the case.
If you still aren’t convinced, here are three reasons why property is still a good investment, and why the market won’t be going anywhere anytime soon.
Positive Price Predictions
When you’re deciding to financially commit to property investment, you want to be relatively confident that you’re going to see a profit on your money. The housing market’s recent activity has suggested that property investment is a profitable decision, and house prices have risen dramatically over recent months.
After a UK wide property prices analysis by experts in multiple estate agencies, 2021 has been predicted to be a steady year of growth for the market. There has never been a more opportune time to invest in property than now when families work primarily from home and are desperate for more space. Properties with gardens are particularly in demand, and sales aren’t slowing down.
The stock market is considerably more volatile since unpredictable circumstances can affect business shares, and the security of your investments is much clearer in property.
Current Urban Regeneration
As an investor, you need to consider your properties’ surroundings beyond only the street or the estate. The UK is booming with cities, and you want to be sure that the locations you pick for your properties are set to remain popular! An unpopular city means less demand for housing, and the less profit you’ll make from your financial investment.
Hotspots like London prove profitable time and time again, but properties in crowded areas are costly. You want to be one step ahead, and target your property investment in cities that aren’t packed now but are likely to be a couple of years down the line! Think places where renovation is occurring, train stations are being developed and renewed, or big shopping centres are set to be built.
New facilities are going to attract a new workforce, and those employees need housing! Properties in regional cities will be affordable now, but their value will increase with demand.
Renting is the New Normal
According to the Resolution Foundation, four out of ten millennials are still privately renting at thirty and one-third of the broader population is expected to rent into retirement. Owning your own home feels unattainable for some while renting allows people to live cheaper and with less responsibility. You don’t have much competition when you’re looking to buy property, yet plenty of potential renters!
With a higher demand for rental properties, there will also be a rise in the rates you can afford to charge. Pursuing property investment to rent out can generate excellent income for you over a long period, providing a comfortable line of financial security.
Even if you aren’t interested in renting out properties as your career, rental money can give you the means to pursue your passion without risking your salary. With quality property management, you’ll see a solid return on investment in a short time without stress! You’re also protected by law as a landlord, so you can be sure that your tenants will treat your property fairly or pay for the damage.
For further guidance concerning the benefits of property investment, contact us at Blue Skies Property Investment.
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