Is it worth investing in property UK?
If you want to boost your income with significant returns, it’s definitely worth considering the UK property investment market. Owning a buy to let property allows you to generate regular rental returns, while capital growth can enable large returns later in life when you decide to sell your property.
Many people who choose to invest in UK property do so as a way to grow their finances ahead of retirement. Owning such a valuable asset helps you to save up funds for a significant retirement fund which could even allow you to retire early and spend more time enjoying life.
In some cases, you could find that you’re earning enough money from your UK property investment portfolio to turn this into a full-time career. If you’ve ever dreamed of a career that lets you work for yourself while generating an attractive income, investing in the UK property market is not to be missed.
Is property still a good investment with Brexit on the horizon?
Despite the result of the EU Referendum and ongoing Brexit negotiations, property investment in the UK is still considered a good investment. While property prices have stagnated and decreased in certain UK areas like London, the evidence shows that in key property hotspots such as the North West, the market is only expected to continue thriving.
Following uncertain times when the result of the EU referendum was announced, there were speculations that the UK property market would crash. However, since the referendum in 2016, UK property prices grew by 4.5 per cent in the year to October 2017, the average UK property price hit £225,826, and average rents increased by 4.3 per cent. It’s possible and likely that after the UK leaves the EU, the property market will follow a similar pattern and defy any negative predictions in the same way it has in these past years.
How much do you need to invest in property in the UK?
The amount of money you’ll need for your property investment will depend on different factors like the location and property type. While some property types like off-plan investments will normally require you to pay the full cost upfront, certain other properties are able to be purchased with the help of a buy to let mortgage.
When using a buy to let mortgage to pay for your investment, you’ll need to put down a 25 to 40 per cent deposit. So, if you find an investment property for sale in the UK for £200,000, you can expect to pay around £50,000 or more upfront. Since this is still quite a large amount, a lot of investors will instead opt to buy an off-plan property and pay for the investment without a buy to let mortgage.
Off-plan properties tend to be offered at below-market prices, such as our Poets Place development which is available to purchase from just £70,950. By buying this investment outright, you’ll be paying near enough the same amount you would for a deposit on a non-off-plan investment, without having to worry about the extra hassle of a mortgage. Better yet, properties like Poets Place often come with assured rental yields for up to 2 years, allowing you to generate a guaranteed return on your investment.