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7 Reasons to Invest in Property

There are many effective ways of investing your money, some of which are more risky than other but potentially offering greater rewards. One very common and relatively safe way of investing is by purchasing property and either renting it out or developing it.

We’re going to give you 7 great reasons to invest in property.

 

Population growth

In the last 10 years, research suggests that the population has increased by 4 million in the UK alone. That means there is going to a lot more people looking to rent property which is going to increase the demand for rental homes.

 

Housing supply at a 100 year low

The latest Government estimates suggest that around 232,000 new properties need to be built in England every year just keep pace with demand, however the number of new homes being built is now at the lowest levels since the 1920’s.

 

Forecast increase in tenants

In the next 5 years, it is suggested that 20% of the population in the UK are going to be renting property. Make the most of the increase in tenants by getting your property on the rental market so you can be sure to secure a high quality, reliable tenant.


Rising rental yields

Due to the increase in the demand for rental property, rental yields will increase making for higher returns for buy-to-let investors.

 

Capital gains

Property prices have increase monumentally over the last 10 years with some homeowners doubling their property prices making for impressive capital gains. Be aware that capital gains are not guaranteed and property prices can also reduce as well as increase.

 

Rental income

Making consistent monthly income from your tenant is a great way to gain a constant flow of money as a result of your investment. Rental income is completely risk-free too.

 

Development opportunities

Some properties that are run down or need modernisation can increase dramatically in price after some carefully budgeted development on both interior and exterior aspects of your investment property. It’s important to find the right property to develop by taking into account the type of property, size, location and whether there are any restrictions on the land.