There are so many reasons why property investment is a good business to be in. Long-term financial gain, short-term rental dividends, and control over your own portfolio to name just some of the more desirable benefits. But, doing it right is where the challenge comes in, especially if you are a beginner.
So, where do you start? Here’s a guide on how to be a property investor.
2017 has been a turbulent year all round and landlords are feeling the pressure more than ever, particularly with the increased scrutiny over their responsibilities following the recent Grenfell Tower fire.
The property market has also hit a lull, especially in the buy-to-let sector, thanks to changes in rules and regulations making a difference to the way landlords can operate.
The aim is to try and kick start the lending market by ‘cooling off’ the rental game, but with rising living costs and interest rates keeping mortgages out of reach for many people, there is still a very big need for rental properties - so what do landlords need to know?
Buying your first property is still one of the biggest financial commitments people can make, but with house prices consistently rising and the property market bursting with potential buy-to-let opportunities, property investment has become an extremely popular source of income generation in the UK, if you know what you are doing!
Just as the housing market was expected to enter a period of relative stability during the summer, the recent announcement that the country will vote for a new government on 8th June 2017 has UK homeowners and sellers once again deliberating the affect this will have on the housing market.
One of the biggest decisions you can make as a property investor is whether you should hire a property management company, but are you willing to relinquish control over everything from collecting rent payments to filling tenant vacancies?
Being a landlord may look easy on paper – buy a property, make it desirable and available for people looking to rent, then simply sit back and enjoy a substantial monthly income. In reality, like any business venture, it takes time, effort and commitment.
In September 2016, it was suggested by highly respected and internationally-renowned Chief Economist, Andy Haldane, that investing in property rather than putting money into your pension, was a better plan for your retirement.
The statement was branded irresponsible and heavily criticised by other financial experts. However, it did leave many wondering if there was any truth to these claims, what the benefits of property investment could be, and could these benefits outweigh those provided by pensions.
The following pros and cons for both sides of the argument may help you make the best decision for you.
Over the past decade, house prices have risen substantially. A detached property in London in 1995, would have cost c. £195,000, but if you were to buy that same house today, you would be looking at c. £929,000. Unfortunately in the past rural properties have, in general, not seen the same increase as the UK's major cities , however will we see an increase in demand? Here is 3 reasons why a rural property might just be a good investment.
Buy-to-Let landlords across the UK were hoping that the 2017 Spring Budget would see Chancellor Phillip Hammond reverse the deeply unpopular tax changes that George Osbourne implemented in 2015 – unfortunately this opportunity was missed. In fact, there was very little mention of the housing crisis or sector at all, despite many landlord groups raising their concerns.
The big property news story has arrived: the day (many) agents were dreading. Yesterdays autumn statement saw the Chancellor ban letting agents charging fees to tenants; the fourth recent attack on the buy-to-let sector.