3 Key Reasons to Invest in Property Right Now
I’m sure if you have been following the news intuitively over recent months, you will be aware of the concern the country has regarding the impending Brexit deal and the impact it could have on the economy within the UK. Part of that concern regards the housing market and how property prices will perform in an unstable economy. Although the current economic climate is off-putting to some and it may not seem like an ideal time to invest, in actual fact, the way the current economy stands presents a perfect time to invest and here is why.
Supply and Demand
Across the UK the demand for housing is stronger than ever. If the no deal Brexit presents economic turbulence, many fear all new homes currently being built will sit vacant for some time as people feel reluctant to buy. In turn, this will have a detrimental effect on property prices and cause them to decrease in value. When property prices have eventually bottomed out, investors can invest in properties when house prices are at their lowest point. Therefore, when property prices rise again after Brexit negotiations are complete, the property will have grown in value and be worth significantly more compared to the purchase price, resulting in a sizeable return on investment. The key is to buy low and sell or rent high. Following that advice will ensure you can make a suitable living, maximize your income and generate huge returns.
Pensions are in Question
Pensions have been in question ever since the talk of Brexit negotiations began as to what impact leaving the EU would have on pensions today and into the future. Certain people are pulling out of their pensions and putting their money into an investment property. Properties from companies like RW Invest are a great alternative to pensions due to the excellent capital growth potential and large amounts of profit that can be generated.
If you are considering property investment, it is important to be informed about what strategy is the best to take. Look at what is available to you and what kind of investment best meets your retirement goals. Are you looking for short term returns or long term? Do you have an exit strategy? There are so many online tools you can use that help you to make informed decisions, don’t act from impulse and only commit yourself to an investment after thoroughly knowing all the facts, as then you cannot go far wrong.
Investing with a small amount
If you are lucky, there can sometimes be investment opportunities available in the UK where you can invest as little as a couple of hundred pounds. If you are starting out in property investment, it is better to start small, particularly while you are still learning the ropes. Some property companies offer the option of investing with as little as £250, but it is important to carry out as much due diligence as you can as you may be stung for more extortionate costs later down the line. The general rule of thumb is that if it sounds too good to be true, then it probably is.
Some financial advisors recommend embarking on a property investment venture when the economy is slower than usual, or during uncertain periods like Brexit. As the economy struggles, property prices will continue dropping, therefore investing a little now will have you all set up and ready to invest larger amounts when the economic landscape improves.