Lets look at what makes property investments so attractive. Now the number of people investing in property is growing strongly. Investors are now looking for better returns for their money. For many years, the most common financial advice had been to invest in shares due to the consistent long term useful returns. Either that or use a savings account to keep the money in with a low interest rate. With property investments, capital growth can be enjoyed either by the increase in house prices or by earning a rental income for better returns. Compared to savings accounts and shares, property investment gives quicker results in terms of returns. A return in an investment could simply be enjoyed by investing in a savings fund but the profits for those investing in property tend to be a lot more substantial.
Advantages of Property Investments
Like all good things, property investments comes with its many advantages:
Investing in stocks and shares means the market dictates the prices which an investor will pay. Finding an investment property doesn’t necessarily mean the market value of the property is what an investor pays. An investor can pay less than the market price for a property by either offering cash or negotiating a lower price. Investors registered on the Silks database get offered investment opportunities below market value which also offer a minimum of 8% rental yields. Contact us here for more information.
It’s not just about the price of the property though. With an investment property, the investor gets the opportunity to renovate it as well as extend it – which in terms drive up the value of the property.
Effort + Investment = Increase in Property Value
Efforts never go to waste. If an investor decides to buy a property and renovate it, it’s going to drive up the value of the property. It’ll either mean an increase in the rental value or if the investor decides to sell up then an increase in what its worth. It’s no secret the demand for rental properties at the moment is incredibly strong. From an investors point of view, by delivering a home (not a house) for a prospective tenant, it’ll generate both income and capital growth for the investor.
Take a look at the latest economical statistics on a newspaper or article of your choice. At least most if not all will mention the increase in migration in the UK. Factor that in and the fact most first time buyers are having to rent for longer before buying and its safe to say the future is in favour of the property investor.
If you’re going to invest in property then it should be done properly. Don’t become an accidental landlord but make sure as an investor you fully understand what property investment means and what it consists of. An investor will get their returns. We at Silks have offered investment properties with up to 14% rental yields. Earning higher yield would mean ensuring the area is right as well as the property. Not just for the investor but for potential tenants too. It may seem like a lot to do but with the help of a sourcing agent, it can be lot easier. Get in touch with us and we’ll book you in for free consultation.