Investing in property – Why it’s still as safe as houses
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Investing in property – Why it’s still as safe as houses

Analysis, Background

Things have changed a lot over the past few years and we are undoubtedly living in uncertain times. But one thing is for certain- no matter how challenging and confusing the economic climate, investing in property is still one of the safest things you can choose to do with your money.

According Knightsbridge estate agent, Plaza Estates “The UK is now more overcrowded than any other part of the EU or G8. With our population at an all-time high and expected to reach a staggering 70 million by 2039, the demand for housing is something that isn’t looking to go away any time soon.”

Along with shares, savings and bonds, property is one of the top four investment practices in the UK. It’s also widely recognised as one of the safest-as long as demand for housing continues to outweigh demand, there will always be opportunities for significant returns on investment.

Since 2000 the UK property market has outperformed the equities market by almost 50%. Add this to low interest rates and a volatile stock market and it’s not hard to see why so many astute investors are looking to put their money to work in property.

And it’s not just about buying and selling. With thousands of people unable to afford to get a foot on the property ladder, the demand for rental property has doubled in the past fourteen years- great news for those looking for a lucrative buy-to-let opportunity.

Many landlords are choosing to purchase large buildings, convert them and let them as HMOs (Houses in Multiple Occupation) and then rent the rooms out to students or other sharers. Rent guaranteed specialist, Assetgrove says “Renting out HMO properties is a sure fire way to make money quickly, so it’s becoming more and more popular with savvy investors.”

EU Referendum in June 2016 and the surprise election of Donald Trump has undoubtedly sent the UK and the rest of the western world into sending into a state of shock and chaos. The pound dropped, the markets went into flux and property prices plummeted as the financial world desperately tried to predict the consequences of the UK vote.

The good news is that investors have been able to take advantage of these low prices, buying properties for well below the normal market value and selling them for a significant profit.

Brexit hasn’t stopped people buying property- almost 50,000 houses were purchased during the month of June alone; the highest growth for almost a year. UK properties have also seen lots of interest from overseas investors, particularly China and India- Central London estate agent, LDG observes “Wealthy parents from abroad are buying homes in university towns for their student children, then selling up a few years later for a tidy profit.”

With an ever increasing population, one thing is for certain- people will always need houses. The UK’s demand for housing continues to grow, presenting investors with powerful opportunities to watch their money grow.

Guest post provided by Property Division.

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