Saving is an increasingly important aspect of your budget especially when you have a family. To make the most out of your money you may have considered investing it. Buy to let property investment can be a great way to maximise your savings, allowing you to generate income from rental property while you wait for it go up in value. It can also be a great way to ensure an inheritance for your children, as property is an investment that lasts. And a diversified portfolio is important to have.
Why Property Investment?
Property investment continues to be one of the most profitable and popular savings strategy due to the lasting appeal of owning land and the potentially huge increases in value. Whether you want to take a DIY approach and take a rundown property and transform it or buy an off-plan property and wait for its value to skyrocket after completion – there are potentially huge pay offs for investing in property.
What kind of properties should I invest in?
There are several factors to bear in mind when looking for a property, from the area to the type of property to the length of time you want to hold on to it for. If you’re starting out with a limited budget, then looking at student property or apartments may be a better option. These investments with a lower entry cost can be a great first investment, and there is a real demand for rental property that is affordable for tenants.
Where should I invest?
When considering where to invest, it’s worth doing your research and finding somewhere where your money will go as far as possible. Think about where properties are in demand and look for locations that are experiencing regeneration and development. Some UK cities have been experiencing incredible price increases, like Manchester which had the highest house price growth of any area of the UK – an impressive 7.6% according to the Hometrack UK Cities House Price Index in June 2018. Property in these city centre locations which are experiencing increased investment and a growing demand for rental accommodation are perfect for potential property investments.
Is there any risk?
Like any investment, property holds a certain level of risk, and property prices go down as well as up. However, unlike other investment strategies there is the appeal of bricks and mortar and the physicality of a property investment, which you can visit and touch. It’s vital to make sure you can afford the property you are investing in and that you are in a position where it makes sense to invest your money.
What if I need the money now?
The one potential drawback to property investment is the process of exiting investment. Unlike other investments, to sell on an investment property, you will need to do everything you normally would when selling a house. However, this can be a blessing in disguise as it will dissuade you from selling and encourage you to keep hold of the investment and save many elsewhere.
How involved do I have to be?
The answer is completely up to you. If you’d like to get your hands dirty and renovate a property from the floor up, that can be a great option. If however, you don’t have the time or inclination, then investing with a specialised property investment company like RW Invest is a great option for you.