There are a huge number of investment strategies out there. From stocks and shares to property to savings accounts – deciding what to do with your money is hugely important. Not only does your investment strategy help you prepare for the future, but it’s also a smart way to control spending and make your money grow. Property investment is a prevalent choice for a diverse range of people as it offers so many advantages which I have outlined below. However, to ensure you get the most out of these options, a trusted guide or mentor is always recommended. A corporate advisor and/or trainer such as Michael Teys can help navigate the perils and pitfalls of property management.
Income During Your Investment
Property is unlike other avenues of investment, where you only benefit from selling your assets after they’ve increased in value. Buy-to-let property investment allows people to earn a monthly income from their tenants. Dependant on area, rental rates can be a considerable amount of money. In the commuter town of Esher in Surrey, tenants paid an average of £1913 a month, and in Oxford, renters paid an average monthly sum of £1612. In Greater London, an average two-bed apartment cost £2216 a month. This rental income can be used to pay off any costs associated with the property as well as for other investments or retirement. Though rental rates don’t always hit these heights, properties that cost less can also provide better yields. Properties like those offered by RW Invest can provide rental yields of up to 9%. Often property investments can pay for themselves if held onto for a decent amount of time, which is another appealing factor for potential investors.
Potential for Growth
The second reason property investment remains popular is the return they can get when they decide to sell on their property. The potential for growth when it comes to property is phenomenal. Elevated levels of investment in city centres has led to a striking increase in property prices, since 2009 average property prices in Birmingham have increased by 36%, in Bristol by 70% and in London by a huge 86%. In under a decade, a London property that cost £200,000 could now be worth an extra £172,000. Property prices are continuing to rise in a number of UK locations, providing investors with opportunities to make incredible profits when they decide to sell their investment property on.
Bricks and Mortar
One perpetual draw of property investment is the lasting appeal of bricks and mortar. When you invest in a property, it’s yours. You can visit it, touch it, even live in it. Property has remained a reliable option for investors and owning property can bring a host of benefits. There are also a huge variety of options when it comes to property investment. From city centre apartments perfect for flat shares, to student accommodation to traditional houses in residential areas, there are a huge amount of options for property investors. People have been investing in properties for decades and a strong, diverse property portfolio is a valuable asset.
Demand for Rental Accommodation
People always need somewhere to live and a large number of people require rental accommodation every year. In the UK, rising house prices and an increased cost of living has meant that fewer people than ever are buying their own house. The number of UK renters has been rising steadily, with a quarter of UK households forecast to be renting privately by 2021. There are currently around 5 million UK renters and demand is set to continue to grow. With a countrywide shift towards renting, potential property investors have an increased number of potential tenants and potentially higher rental returns.