homebuyersnetwork.co.uk
Why Property
- Property is a good hedge against inflation which is showing signs of re emerging in the global economy.
- Rental income from property is a stable source of income.
- Real estate always has a residual value, property values will never fall to zero unlike shares and hedge funds.
- Property is a kind of hybrid asset with the capital appreciation of a stock, but the income producing capacity of a bond. Investors typically have more control of the nature, timing and size of real estate investments.
- Real estate is always an excellent collateral against loans and allows debt finance to be secured at the best rates.
- Property portfolios offer great scope for diversification of risk into different property types, locations and rental levels helping to spread the risk of an interruption of income.
Its no secret, the reality is that as an investment, property has performed consistently for over 50 years. Although there can be fluctuations in property values they are usually far less volatile than the stock market, but don’t take our word for it your own research will show that property has typically doubled in value every 7 - 10 years.
Property has become an even more attractive investment because you can use other peoples money (gearing) typically in the form of a mortgage to purchase your property and maximise your return. In short you personally don’t have to lay out all the capital, but can still enjoy all the profit.
Other facts:
- On average UK property prices have increased by 100% plus every decade in the last 100 years.
- Chronic housing shortage means that there is still room for significant growth.
- According to the office of national statistics there will be annual short fall of housing in the UK of 100,000 properties each year for the next decade.
- This could mean a 1 million housing shortfall by 2020 if current trends continue.
- The barker report concluded that strict UK planning constraints, increasing numbers of smaller households due to social change and chronic shortage of new houses will remain for the foreseeable future.
With the rise in property prices ruling out home owner ship for many people and substantially more people that property to house them. There has never been a better time to invest in rental property.