There are several reasons why people choose to invest in property.
There is the potential for a monthly passive income through collecting rental income from tenants in buy-to-let properties. This can be used to supplement your main source of income, or if you have a large enough investment portfolio, you can use the rental income as your main source of money.
Homelet’s Rental Index indicates that the average rental payment is £1,159 pcm as of September 2022, up 9.2% from 12 months ago. This shows you can make considerable income from rent, which is set to rise.
With the UK currently seeing a demand for housing outstripping the supply, it will probably not be a hard task to find tenants to occupy your buy-to-let investment property. Many young professionals are looking for new build properties in city centres, which just so happen to be popular buy-to-let investment properties.
You can also benefit from capital appreciation as the market value of your investment properties grows. Property is a physical asset which grows in value over time, so you can find the value of your property increases greatly over time.
Data from the Land Registry’s UK House Price Index indicates that house prices have grown by 13.6% in the past 12 months from August 2022, showing that there is room for considerable growth.
For more reasons why you should invest in property, try our guide where we ask the question: why invest in property?