Property ..Still Worth Investing?September 4, 2017 5:51 pm
In the current market I am often asked ‘Is it still worth investing in property? Yes I scream! Allow me to tell you why. At the moment most banks or building societies are offering between 1.25% and 2.5% on savings, a buy to let property can offer between 6% and 10% year on year not to mention capital growth! Are there risks, of course there are but thats where a good letting agent is worth his weight in gold. I remember when I thought about buying my first property and my friend said to me “give me any pension where I can put down a deposit and let someone else pay into it for the next 20 years and i’ll take it’ and he was right, Property can do what no pension can!
The entire ethos of Property Investment is that after an initial deposit, the tenant pays your mortgage. At the end of the term you will own the property outright and can decide whether to sell or continue to take the monthly rent as pension. I should stress that this type of property Investment is not for everyone and landlords looking for quick returns and immediate profit should probably look elsewhere.
Allow me to give you some examples. 40 years ago a 1 bedroom flat in paisley would cost around £3,500, 20 years ago the same flat would cost £35,000 and 10 years ago that same flat would cost £65,000! imagine if we knew then what we know now. The property crash had a massive impact on sale prices and we are still recovering but we are not too far away now from pre-2008 prices and with the shortage of housing stock provided by the government the demand for rented accommodation is higher than ever (particularly among young families looking for long term, stable accommodation).
If you want more information on investing in property please call one of our branches. We would be happy to help answer your questions and walk you through the process from start to finish.