Why Invest in Property?
Your first step in deciding if real estate investing is right for you is to think about exactly why people invest in property in 2021.
Simply put, buying investment properties is an excellent, and (comparatively) safe way to invest your hard-earned cash.
However, investing in the property market may not be right for everyone, with the effectiveness of an investment strategy depending on your goals.
With this in mind, check out the pros and cons of property investment to see if it’s the right solution for you.
For a full detailed look into why you should invest in property, be sure to check out our brand-new 2021 guide.
Pros of Investing in Property
- Rental income is Currently Higher Than it Has Ever Been – In fact, the HomeLet Rental Index found that the average monthly UK rental income was a record-high of £1,061 per month in September 2021.
- Property is Safer than Stocks – Despite the Covid-19 pandemic, UK house prices have reached a record high, surpassing a £250k average value for the first time ever. In comparison, the stock market suffered its worst crash since 1987 as a result of lockdown.
- Huge Rise in Prices Predicted – Savills’ optimistic property price predictions show a rise in UK prices of up to 18.8% by 2026, ideal for those looking to make a profit from selling their property.
- Rental Demand is at a Record-High – A post from Buy Association in April 2021 reported that the average time it took to let a rental property was just 8.9 days, down from 31.9 days in 2019. This is the shortest amount of time ever recorded by estate agency Hamptons. This means there’s less chance of your property staying untenanted and not earning money.
- Can Be Completely Hands-Off – While you can choose to self manage your buy to let investments and become a landlord, you can also consider hiring property management companies to handle all landlord responsibilities, such as collecting rent. Their services are available for a fee, usually around 10% of your monthly income.