5 Reasons for Investing in Property in 2016
With today’s booming property market comparing very favourably to slumping returns on other types of investments, it probably isn’t difficult to think up five reasons and probably many more for investing in property at the moment. Just in case you do need any extra help or motivation, here are ours suggestions.
Growing population means increasing demand
To start from the logical beginning, there are always going to be new people and new families needing new homes in the UK. At the moment the population of Britain increases by over a quarter of a million households every year. These are all people that need a roof over their heads, meaning an ever-increasing demand for property. It’s a well-known fact that the government is not doing enough to supply houses to meet this demand, so privately rented properties are essential. A bit of basic market maths shows that any property that you buy now will have a rapidly increasing value and rent return for the foreseeable future.
Low interest rates
At the end of 2015 Mark Carney, Governor of the Bank of England, announced that, for the near future, interest rates will remain lower than they ever have been. This means that mortgages and other loans related to property purchase will remain easier to take out and cheaper to pay off. As commercial banks get more generous and the Bank of England retains its low interest position, it’s possibly the best time since the credit crunch to get on the property ladder or expand a real estate portfolio cheaply.
Properties for rent, unlike many kinds of investment, have a steady and reliable income that changes only gradually, usually in an upward direction. While stock markets are unstable and bank investments are unreliable, property investments will always return the same amount every month. This allows for much better financial planning for the short and even long term
Reliable, rising value
It seems at the moment that rising house prices just cannot be stopped. A recent report by the British Land Registry revealed that the average house price in England and Wales increased by 7.1 percent in the year to January 2016. This upward trend is predicted to continue thanks to recovering banks, increasing wealth and, as outlined above, increasing demand. So those who get in now could be looking at serious profits in the coming years before things like rent returns are even taken into consideration.
Real estate, real security
If you buy a house or a commercial property, you can go up to it, see it, touch it, and even breathe in the ‘new property’ smell. That simple fact is something that stands you in good stead in the unpredictable investment market of today. A house can be insured to its full value. It can’t run away with your money or liquidate behind your back and, if you have a high equity in it or own it outright, not even an all-out financial crash can take it away. This is something that a lot of other types of investors have wished was true about their portfolio ever since 2009. As long as you invest wisely and within your means, you are safe.
We’re Chris and Tony Hodgson, a father and son team that’s worked together for years. Our professional and friendly approach to doing business has helped us to grow our portfolio and deliver customer satisfaction across the city. Get in touch on 01482 342155 or email email@example.com to invest in Hull property today.