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Why Is It the Right Time to Invest in the UK Properties?

best time to invest in property

The rise of the rented households is at the peak and that is a trend we saw in light ever since the last decade. Around and almost 4.7 million households in the UK are inhabiting privately rented accommodations. The buy-to-let properties are surging in demands, and investors globally are looking out for opportunities to strike the best investment targets in the UK market. So if you ask is property a good investment in the UK, then keep an eye on our reasons below as to how the investments will help you flourish at this point.

The Rental Income

Property investments are the best and the most effective way to leverage your passive income. So to answer why invest in UK property, this is the best bet to gather your capital for your very next investment. A certain and specified amount of financial inflow will be observed in the form of rents from the tenants inhabiting your properties. The properties must be planned and well-researched enough for you to pay off your mortgage pretty well without breaking your bank. If proceeded with intelligence, your income will leave you with a decent amount to save even after you cover all of your expenses. Remember, building your capital must be your ultimate goal.

Correspond to the High Demand

The guidelines across the UK are enabling more tenants to rent properties rather than buying them. This is paving avenues for more big shot investments from global investors. Rental properties are becoming more comfortable to the masses and their higher demands are also getting fed. There is also a factor of unavailability of affordable properties in and around the UK which is forcing people to settle in rented properties. The mortgage underwriting guidelines are also becoming stricter which is making the common mass deflect from getting into the hassles of acquiring newer properties.

Accumulated Capital Gains

The property market is ever-volatile. The fluctuations seen in this market are way higher than any other market can witness. So if an investor wants to play safe, a thoroughly in-and-out knowledge will be required to enter. But once on entering, the returns are amazingly high and there are no doubts about it. Though this investment avenue does not let new investors hop in, seasoned investors can fully utilise this situation to grab the best deals. They majorly think about their long-term goals. The investor is pretty much equipped with the idea of how far will the price of the property rise in a few years. And that is the scope where the avenues of your capital appreciation will increase. A detailed and well-sketched analysis of your property will help you understand how you can reap maximum benefits in the longer run.

Costs are Offset Against Taxes

A resident of the UK is supposed to pay their tax bills with them filing Self-Assessment Tax Returns. In this course, an individual can offset some of his costs against the tax. These are the costs that are inclusive of the fees that are paid to your letting agents in course of the property to-letting, the interests that are charged against your mortgage payments or the SPVs. You can also offset your costs against the funds that you are likely spending behind the advertisement campaigns of your properties. Besides these, the repairs and the council taxes also count in these offsetting schemes. This is what has encouraged UK property investments. The renovations and the property repairs are also a few of the reliefs that the UK government provides to its investors.

Discounted Price Availability

invest in UK property

If you are thinking that the acquisition of a property involves acquiring it in the full market value, then you are mistaken. The prevalent acquisition strategies, if put to use correctly, can even help you save about 30% of your net investment. That is a lot, to begin with, and to answer the most predominant question of why invest in UK properties. Some strategies will help you acquire properties from Auction Houses, Short Leases and Repossessions. You can also buy from using the Buy Refurb Refinance policies that look forward to your investment efficiency and help your portfolio grow more with time. But good things come with a twist. Only a few agents in the UK have access to such explicit policies and property deals. Finding the agents might be tedious and if found, your investments will reach newer heights.

Positive House Price Rise Predictions

The graphs of property prices rise to indicate a good turn in the upcoming decade. This in turn reveals that areas are going to show a surge in the demands, raising the prices too. With individual areas putting into concern, some places are going to do even better than the national average, and hence putting your money into the development of these regions will help you build piles of finances in the latter half of the decade. These graphs are also pulling in more foreign investments that are going to create incredible opportunities further along.

The Great Undersupply

As the governmental policies are barring individuals from owning properties, the rise of rentals is on the surge. But due to the presence of a great imbalance in the demand and supply, the people with genuine needs are yet not finding the suitable to-let properties to settle down with. This is a challenge for the renters but is the biggest door of opportunity for investors seeking to bring in buy-to-let properties under their portfolio. By the end of 2040, it is estimated that the renters in the UK are going to outnumber the homeowners and this is going to answer if is property a good investment in the UK.

Regional Regeneration

There had been a halt to the flourishment in certain regions of the UK a few years back but they are back to booming developments today. They include cities like Birmingham, Leeds, and Manchester, and naturally, the property prices too are going to see a surge. The investors, hence, are looking to invest in these non-capital cities to gain fruitful alternatives as compared to other means of investments throughout the nation.

The Trends of Renting

The ‘Generation Rent’ concept is spreading all over the UK in its full swing and that is what is appealing to the investors to look forward to building long-term portfolios to expand their gains. The millennials are responding to this trend and are privately renting properties rather than acquiring them. This is a trend that is not going to alter in the few coming years and indulging in such investments will be beneficial for you.

Lower Rates of Interests

The pandemic is setting the standards for lower interest rates all over the nation. March 2020 already witnessed two successive cuts only for the Bank of England to settle its base rates at the historic margin of 0.1%. With this, the avenues towards competitive buy-to-let mortgage rates are becoming incredibly raft and the investments are becoming a very accessible thing to do right now. If you are a seasoned investor, remortgaging your properties has become very wise where you can release your equity and build up newer investments.



The Population Blast

The next 20 years is a very crucial stage for the UK and the population is predicted to blast out at a whopping 74 million. The prediction drives in a clear state of indication about how hugely will the house demands increase. The demographics are shifting hugely where the trends of investments are also shifting. Keeping pace with the demands and understanding the curves are going to levitate how effective will your investments be in this market.

Long-Term Growth

The property market forecasts majorly outlay the idea of long-term growth despite the volumes of the transactions you are dealing in. The property market, as stated by the experts, is a much better place to bounce back after the 2020 crisis and it is still in a much better place after the crisis of 2008 left us in. The rental market has been flexible enough to adapt to the “new normal”. The investors are re-evaluating their portfolios to help them adjust to the changing demands.

Up Above Every European Nation

With London leading the front, the UK as a whole is still the leading option for the global investors to set their finances upon. This is also the second-best option globally to invest in the properties. Europe is also a major tourist hotspot to cater to their ever-emerging needs. The effect of an investor has a ripple effect on the entire market and holding hands to these, the regeneration is seen on full swings.

So if you wonder about why invest in UK property, then above lies the answers to your query. Excellent rental returns with opportunities to appreciate your capital will not be so easy in any other part of the world, except for the UK. With the demand and the governmental policies in place, this place is ideal for both new and seasoned investors.

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Fabrizio Cravero

Fabrizio Cravero

UK Property investor

Fabrizio is sharing his knowledge about investing in UK properties from overseas. He is based in Hong Kong and provides weekly guidance to his followers.

Fabrizio Cravero

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