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In the UK, property investment has been a large portion of investment as a whole for hundreds of years. Why is that the case? Because property is an investment that everyone tries to make at least once in their lifetime, from buying a home. However, in more recent times, the popularity of investing in property and buy-to-let to make a good amount of income has grown massively. To help show as to why the investment into property has shot up in popularity, and why it is one of the safest investments you can make in 2020, here are the 5 reasons as to why:
1) House Prices
Many people are worried about with global-scale events such as Coronavirus and lock-down that their house prices may fall. This worry derives from people selling houses less as they think they can’t, as they are in lock-down. There is nothing against selling your house at the moment, and it is very possible. House prices are in fact starting to rise rapidly as things get back to normal. Everything needs to go back to normal at some point, however, house prices are expected to rise rapidly in the next few years to come. This is why it is best to invest now, while the house prices are cheap. A good way to measure house price is Ready Steady Sell, a cash buying company that offers a free valuation online for any home.
2)Long Term Investment
When investing money into property you need to think about both the short- and long-term consequences. In the short term, all you need to think about is how much money your putting in now, and what you expect to get from it in future. This is just an estimate, but it is still important. This is why if it is really cheap, but declining in price, it may not be the best choice. However, if it’s cheap but gaining in price, that is a good option. In the long term, you need to know firstly your profit; is it what you expected? Is it actually a profit, or did you lose money? These things are important at the end of your investment into the property.
3) Personal Benefits
When it comes to investing in property, there are a lot of personal benefits. One of the greatest personal benefits is confidence. You will need to talk to your Tenants all of the time, taking rent, management. These are all a boost to your confidence, which you can then use further in life with job interviews and what not. Another personal benefit is work experience. Many property companies, or just companies in general go nuts for work experience. Why have some one that only has the good grades when you can have someone who has actually been out there and experienced it for themselves? You will have a portfolio of the property/properties you manage, and tenant reviews. A final personal benefit is income. Investing in property is a great way of making a good income. You may want a car, a new wardrobe; whatever it is, by investing in property, it is possible to do so.
4) Property Value Boosting
By investing in property, you will require the skill of increasing a property’s value. You need to know how to decorate if you decide to go furnished, as staging a home is very important when it comes to getting the highest value on a property. You need to know what colours go with what. And also, you need to know about property maintenance, such as checking the boiler is working, all the toilets are flushing etc. By learning these skills, you can integrate it with your own home, increasing the value for if you decide to sell in future.
5) Guaranteed Sale
The UK’s population is expected to reach 74 million people in the next 20 years. This is an obvious sign that you will have no trouble selling your property at the end. There will never be a time where the population stops growing, it has to keep growing for the human race to survive. That means that there will always be new people in need of a house. From young couples, to old people, to large families; we all need homes, and there will always be a demand.
In conclusion, investing your money into property in 2020 is safe, secure and money making because there is always an increasing demand for houses, and therefore you are guaranteed a sale. House prices are currently the lowest now that they have been in over 40 years. Thus, what is the harm in sparing a bit of money into property.
The spring budget of 1987 put in a moderate clause
to boost the housing market which was already healthy,
London prices increased all summer till the oct market crash
prices slowed over the following six yrs, by 93 some dockland property
prices fell by up to 40% before recovering,
History will repeat itself,
the risks are high, buying into this present bubble
if property is bought as an investment it should be traded in cycles,
at the moment we at a peak, the above comments should be backed up by
traded buys/sells in property since 1972,