The financial attractions of buy-to-let investment are numerous: rental income, medium to long-term capital growth with minimum volatility and risk. Investing in UK buy-to-let property also contributes to an important public service by providing quality accommodation for the large and growing number of people who require property to rent in the UK.
The Growing Requirement For UK Buy-To-Let Property
The UK buy-to-let market is set for significant growth as a result of combination of several factors. Mortgage lenders now demand larger deposits and are more stringent about the type of person to whom they will lend. This has forced many frustrated would-be buyers to rent.
Increasing immigration and social demographic changes such as the growing divorce rates, people seeking greater independence at a younger age and students are all pushing up demand for property to either rent or buy.
The UK has a high proportion of owner occupiers in comparison to many other countries within Europe such as Germany and France. There has been a gradual decrease from 71% of all householders being owner-occupied in 2003 to 68% in 2008. This trend is set to continue, pushing up the need for more rental property.
What Type Of Investor Are You?
Before any investment is made, it is important to establish what type of investor you are. Our video on this subject identifies some of the investment considerations that require to be made. It is also important to have a clear set of investment goals, our article ‘Financially planning for property investment’ discusses this greater detail.
One of the main benefits of investing in property is the potential to buy an asset with on only a fraction of the price required as a deposit whilst gaining a mortgage for the remainder. This enables the investor to gain the return on 100% of the asset and not just the deposit. Our video ‘The power of leverage’ explains this point in further detail.
UK Buy-To-Let Property Overview
The UK property investment market is currently very attractive for investors; those with the appropriate deposits have the opportunity to buy at competitive price and enjoy rental incomes ranging from 6%-10%. Additionally the potential of capital growth exists over the medium to long-term. It is important invest in below market value or discounted property; as it creates instant equity within the property, allowing investors to withdraw the equity via a mortgage to fund another purchase or profit upon its resale at its normal market value.
Propertyinvestment.co.uk is as a buyer’s adviser focusing purely on UK residential and commercial investment property . Our service enables our clients to profit from our experience, contacts and purchasing power to negotiate discounts or financial incentives that might not be otherwise available to a single investor. Our recommended investment property is below the current market value which enables our clients to profit from property.
Call us today to find out how we can help you achieve your property investment goals.