{"id":7393,"date":"2016-06-06T10:10:10","date_gmt":"2016-06-06T10:10:10","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=7393"},"modified":"2018-02-16T08:50:06","modified_gmt":"2018-02-16T08:50:06","slug":"is-now-the-right-time-to-invest-in-property","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/is-now-the-right-time-to-invest-in-property\/","title":{"rendered":"Is Now The Right Time to Invest in Property?"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p class=\"Body\"><span lang=\"EN-US\">Does the old adage \u2018safe as <a class=\"wl-entity-page-link\" title=\"House\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/house\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/house;http:\/\/rdf.freebase.com\/ns\/m.03jm5;http:\/\/dbpedia.org\/resource\/House\" >houses<\/a>\u2019 still apply to <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a> investing? From being a highly popular investment method, buying into bricks and mortar has taken a bit of a battering recently, especially concerning the <a class=\"wl-entity-page-link\" title=\"buy-to-let\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/buy-to-let\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/buy_to_let;http:\/\/rdf.freebase.com\/ns\/m.083ycg;http:\/\/dbpedia.org\/resource\/Buy_to_let\" >buy to let<\/a> investment model. <\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">Extra legislation for <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a>, the reduction of tax breaks, and increases in buying costs such as 3% extra stamp duty payable on properties that are \u2018other than a main residence\u2019 have seen buy to let investors decline. The CML (Council of Mortgage Lenders) forecasts that <a class=\"wl-entity-page-link\" title=\"lenders\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan;http:\/\/rdf.freebase.com\/ns\/m.01dnzs;http:\/\/dbpedia.org\/resource\/Loan\" >loans<\/a> made to new landlords will drop from 116,000 in 2015 to 90,000 in 2017. That said, <a href=\"http:\/\/www.whatinvestment.co.uk\/financial-news\/markets\/2504731\/is-property-a-good-investment-for-2016.thtml\"><span class=\"Hyperlink0\">yields for landlords on property rentals are still favourable <\/span><\/a>and, generally speaking, <a class=\"wl-entity-page-link\" title=\"Renting\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >rents<\/a> are increasing. <\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">For the long haul property is still considered an appealing investment. But, the financial landscape could change in the light of the <a href=\"http:\/\/www.ig.com\/uk\/brexit\"><span class=\"Hyperlink0\">Brexit<\/span><\/a> situation and this could well affect the property <a class=\"wl-entity-page-link\" title=\"Market (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/market-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/market_economics;http:\/\/dbpedia.org\/resource\/Market_(economics)\" >market<\/a>; it\u2019s certainly affecting <a class=\"wl-entity-page-link\" title=\"value\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/value-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/value_economics;http:\/\/rdf.freebase.com\/ns\/m.0bhr4z;http:\/\/dbpedia.org\/resource\/Value_(economics)\" >values<\/a> of property companies\u2019 share prices with expectations that their business could take a drop if the UK leaves the EU.<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">So, with all this going on, is property investing still worthwhile?<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">It\u2019s difficult to provide a universal answer; much depends on the individual\u2019s \u2018position\u2019 and there are certain aspects to cover.<\/span><\/p>\n<h2 class=\"Body\"><span lang=\"EN-US\">Interest rates<\/span><\/h2>\n<p class=\"Body\"><span lang=\"EN-US\">If investing in a property would entail you pushing the boundaries financially (arranging a <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgage<\/a> that is only just about affordable for example) then it may be worth thinking twice or even three times before committing. Interest <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rates<\/a> have remained historically low for several years but, with the US central bank the Federal Reserve raising interest rates for the first time since 2006, forecasters predict the UK may follow suit.<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">It\u2019s important to ensure interest rate rises &#8211; and thus the increases to monthly mortgage payments &#8211; could be covered. <\/span><\/p>\n<h2 class=\"Body\"><span lang=\"EN-US\">Where to buy<\/span><\/h2>\n<p class=\"Body\"><span lang=\"EN-US\">The key is buying in areas where prices will continue to rise over time and where rental yields will be high enough. Also, can the property be rented easily? Is there a demand for properties of the type being considered for purchase?<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">Generally, demand for <a href=\"https:\/\/www.thehouseshop.com\/property-to-rent\" title=\"rental properties\">rental properties<\/a> is still high and the HomeLet rental index shows average rents across the UK are \u00a3743 per month with \u00a31,544 the average in <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/london\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/london;http:\/\/sws.geonames.org\/2643743\/;http:\/\/rdf.freebase.com\/ns\/m.04jpl;http:\/\/yago-knowledge.org\/resource\/London;http:\/\/dbpedia.org\/resource\/London\" >London<\/a>.<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">Get these right and property investment could still be a sound purchase. It\u2019s very important to research carefully &#8211; for example, <a href=\"http:\/\/www.economist.com\/news\/britain\/21697575-faulty-land-use-regulation-throttling-capital-grip-tightens\"><span class=\"Hyperlink0\">London is becoming less of an appealing place to invest <\/span><\/a>as prices increased to the point where a correction is predicted. This isn\u2019t to say don\u2019t buy there; but don\u2019t assume a rapid value increase on the shorter <a class=\"wl-entity-page-link\" title=\"Contractual term\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/contractual-term\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/contractual_term;http:\/\/yago-knowledge.org\/resource\/Contractual_term;http:\/\/rdf.freebase.com\/ns\/m.02rfhkx;http:\/\/dbpedia.org\/resource\/Contractual_term\" >term<\/a>. <\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">If the purchase is for the long term, then a low rise in value forecast for the coming period of time may not matter too much.<\/span><\/p>\n<h2 class=\"Body\"><span lang=\"EN-US\">Type of property<\/span><\/h2>\n<p class=\"Body\"><span lang=\"EN-US\">Buying the right type of property is key &#8211; most tenants look for one or two <a class=\"wl-entity-page-link\" title=\"bedrooms\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/bedroom\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/bedroom;http:\/\/rdf.freebase.com\/ns\/m.02_58j;http:\/\/dbpedia.org\/resource\/Bedroom\" >bedroom<\/a> properties. Managing a larger property converted into bedsits or flats (HMOs or Houses in Multiple Occupation) isn\u2019t for the faint hearted, with increased health and safety rules making the management of such a property a full time job, but can reap rewards.<\/span><\/p>\n<h2 class=\"Body\"><span lang=\"EN-US\">Timing<\/span><\/h2>\n<p class=\"Body\"><span lang=\"EN-US\">Timing is everything and now that April has passed and the Stamp Duty rules have changed some would-be landlords may well have been put off entering the market.<\/span><\/p>\n<p class=\"Body\"><span lang=\"EN-US\">In the run up to the deadline there was a scramble, as investors sought to complete their property purchases. But, now the heat is off, assessing the market, doing research into the local rental market and making a decision without time pressures can still reap rewards.<\/span><\/p>\n<h4 class=\"Body\">TheHouseShop have a wide selection of <a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\">houses for sal<\/a>e from private sellers, High Street agents, online estate agents and some of the UK&#8217;s best property developers.<\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Does the old adage \u2018safe as houses\u2019 still apply to property investing? From being a highly popular investment method, buying into bricks and mortar has taken a bit of a battering recently, especially concerning the buy to let investment model.<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/is-now-the-right-time-to-invest-in-property\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":7394,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[13],"tags":[402,48,55,517,125],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2016\/06\/investing-in-property-image.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/is_now_the_right_time_to_invest_in_property_","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7393"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=7393"}],"version-history":[{"count":4,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7393\/revisions"}],"predecessor-version":[{"id":14665,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7393\/revisions\/14665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/7394"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=7393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=7393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=7393"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=7393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}