Why invest in property…

Obviously, like with all investments, there are risks involved. But that’s a no-brainer, but so is the fact that you’ll never gain, unless you gamble sensibly. These are particularly strong reasons why I think investing in property is a sensible move…

I think property investment statistics speak for themselves. On average, property prices have doubled in the UK every 7-10 years; now that is nothing to sneeze at.

The UK has a shortage of housing caused by a number of social factors, which effectively has increased the demand for buy to let properties. In the early stages, rental incomes often don’t exceed your outgoings on a property. But as the property increases in value, rents tend to rise faster than costs and the property generates net income.

Property investment provides a safety net for future stability. Pension schemes are uncertain and unreliable at the moment, but the demand for property is not.

Property is a touchable asset that you own and control. Because of this, its value can be increased through simple steps, like applying extensions (e.g garage, bigger kitchen), or simply a coat of paint. With other forms of investment, you don’t have such control.

Here’s the best part; when value of property increases you can re-mortgage the property and the additional loan taken out is, in effect, tax free profit.

Essentially, Investing in property offers two major benefits: capital growth and tax advantages. There are loads more advantages and of course, plenty of disadvantages, but these are just a few of the advantages of property investment that allow me to have faith in property.

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