Why investing in property will be the best thing you’ll ever do
There comes a time in life when you start stashing money away and thinking of your financial future. Many people open savings accounts or look for cash ISAs but with the Bank of England’s interest rate sitting at an all-time low of 0.5 per cent, investing in property becomes more of an attractive option.
Sure, there’s a lot of negative press at the moment about high house prices and unattractive mortgage rates, but buying you own home is likely to be the best thing you’ll ever do, so why not find out more here about buying abroad or read on to discover the general benefits of property investment.
A home is a long-term appreciating asset
Owning your own home – either in the UK or abroad – might seem like a burden sometimes (after all, it doesn’t deliver the income you can get from dividends and requires regular maintenance and attention) but it is a long-term appreciating asset that someone will (hopefully) lend you a lot of money to buy. The more you think of your home as a long-term investment the happier you’ll be with your decision – after all, the annual average appreciation on most homes is between 3 – 5 per cent, which doesn’t seem too shabby compared to the 0.5 interest rates of most savings accounts these days.
The opportunity to increase your returns
Once you’re a property owner you can set about increasing the value of your home. There are many ways to do this from installing a new kitchen to popping in a modern bathroom or adding a conservatory, all of which could add pound signs to your abode if you ever wanted to sell. Loft conversions can also prove attractive to potential buyers and a well-landscaped property is sure to improve the curb appeal of your home. When putting your abode on the market, however, don’t forget to have it professionally valued to avoid missing out on much-need returns and choose when to sell carefully as when the property market booms you could earn a small fortune.
The chance of a regular income stream
One of the best ways to earn a bit of extra cash is to invest in property you can rent out to students and professionals alike. Simply decide what type of rental market you want to target before buying suitable properties and charging a competitive yet profitable rate. If you live in a student town, for instance, offering reasonably-priced, furnished accommodation is sure to prove incredibly popular with academics willing to sign flexible contracts. Similarly, many professionals don’t mind sharing with other people on a short-term basis or you might decide to rent your properties to families only on a long-term basis – the choice is yours.
What’s more, buying multiple properties and renting them out will not only give you a regular income stream, but it will also provide you with a financial safety net should you ever be in need of cash. Properties are tangible assets that will always be worth something, so as long as you keep them in a good state of repair you should be able to watch the housing market and sell them on as and when the time’s right.
Buying a property is a great move for many reasons, so it’s well worth sussing out what’s available and making that life changing investment.