Why Invest in Property?

12 Key Reasons to Invest in Property

There are so many benefits to property investment and reasons why investing in UK property is a good idea.

The 12 main advantages of investing in real estate are:

1. High cash flow
2. Capital growth returns
3. Tax benefits
4. The ability to diversify your portfolio
5. The chance to build wealth
6. A choice of different strategies
7. A combination of returns
8. A thriving rental market
9. Affordable property prices
10. A hands-off strategy
11. Various payment plans
12. A low-risk venture

In this section, we’ve split each of these benefits into four relevant categories.

If you’re wondering why you should invest in the UK property market, continue reading to find answers to the question ‘why invest in property?’

There Are Fantastic Financial Benefits 

There Are Tax Benefits

While some investors may see the taxes involved with property as one of the disadvantages of property investment, it’s important to note that tax benefits actually come with investing in property.  

Often, property investment interest is tax-deductible, and investors can usually deduct a lot of the costs involved with owning and managing a property.  

Occasional tax breaks, such as the stamp duty tax holiday from July 2020 to October 2021, allow investors to save money on taxes.  

There Are Various Payment Plans to Choose From 

If you don’t have the full amount of cash needed to invest in a property, there are different payment options available to you. 

Many property investors choose to use a buy to let mortgage to fund their investment, which works similarly to a typical residential mortgage.  

Other investors may opt to pay for their property in smaller, more achievable instalments, which is an option offered by many property investment companies selling off-plan properties.  

The Property Market 

The UK Rental Market is Thriving

Rental properties are in high demand in the UK right now.  

A report from April 2021 found that the time it takes for rental properties to become tenanted has been reduced to just 8.9 days from 31.9 days two years prior.  

Rental prices are also high across the UK, with some of the highest rental yields of up to 10% being found in top buy to let areas like Liverpool.  

Property experts JLL have predicted that average rental prices for UK property could rise by 2% over 2022, with an expected 8.5% five-year increase.  

Affordable Prices Can Be Found 

House prices across the UK have been rising rapidly over the last few years, making buying a property more difficult for first-time buyers. 

On the other hand, investors have the opportunity to make more affordable property purchases by buying off-plan properties.  

Off-plan properties – properties that haven’t yet been completed – are offered at below-market rates by property developers.  

When these properties are sold in more affordable parts of the UK, better investment deals become available. For example, in cities like Liverpool, it’s easy to find lucrative off-plan opportunities for less than £100k.  

Capital Growth Returns Are High  

Because UK house prices are growing significantly in several key regions, investors benefit from enhanced capital growth returns.  

In less than 12 months, UK house prices grew by 8.4% on average between October 2020 and August 2021. 

By 2025, average property prices in the UK are expected to have grown by 21.5%, with higher growth of 28% predicted for the North West and Yorkshire and the Humber, and 23.9% growth in the West Midlands.  

Why you Should Consider Investing in Property in 2021/2022 

If you’re considering buying an investment property but asking ‘​​should I invest in UK property in 2021 or 2022?’, remember the following property market facts: 

• There’s a housing shortage within the UK property market, which has left a significant gap between supply and demand levels. Property prices are rising quickly as a result. 
• Rental yields are high, and demand for rental properties is through the roof, meaning investors can start earning rental income right away. 
• The choice of different property investment strategies and the different types of property and property prices available make investing in property an option for investors with a range of budgets and goals.  
• Funding options such as a buy to let mortgage and payment plans are available to those who invest in property in the UK. Most banks and mortgage lenders are happy to provide loans for buy to let investments. 
• Property investing is a business, and investors can choose to either fully take control of their own venture or opt for a hands-off investment.
• All in all, those who invest in property can build wealth over time and boost their income to meet financial goals more easily. 

Invest With RWinvest

If you’ve found our ‘why invest in UK property’ guide helpful, be sure to explore our latest UK property investment opportunities.  

With a range of prices, locations, and property types to suit all needs and budgets, you’re sure to find your ideal investment in the UK.  

If you’re still asking ‘why invest in the UK property market?’, feel free to contact us via our live chat service or by giving us a call. Our property experts will be happy to advise you further. 

To discover more about investing in property, look at our guide to property investment for beginners in the UK, filled with top property investment tips.