The key to property investment success is purchasing suitable properties for your own financial and personal situation and being in it for the long run, as property is almost guaranteed to rise in value over time, so buying property is still a good investment.
Property is still hugely beneficial for investors as it generally has high yields and capital growth. It means, money in your bank account as long as the property is occupied (or every single month if you’re part of our Guaranteed Rent scheme), so you always have a cash flow available. No matter what happens, people will always need homes to live in, and with the number of homes required being far higher than the number of homes available, you can be confident rental properties will always be in demand.
Over the last few years, the growth in property prices, especially since the beginning of the Coronavirus pandemic, has helped landlords tremendously. Property across the UK has risen an average of 10.2% every year [source], and even if prices fall, this would only result in a loss if the property is sold. If the property is kept and continued to be rented out until prices rise again, the investment is sustained, which many forget when considering the pros and cons of property as an investment.
Landlords also have more direct control over property investment when compared with other types of investments, such as stocks and shares. Landlords can impact their returns when they make property improvements, keep void periods to a minimum, and choose good quality tenants who will take care of their property.
We firmly believe that now is not the time for landlords to think about selling their investment properties; instead, it is time for landlords to consider releasing some existing equity in their property or properties to add to their portfolios. Releasing equity from a single property, or several, to put down a deposit on a new property can certainly be worth it in the long run as it creates another income source and will add to the amount you receive every month.
If you’re already a landlord or are about to become one, why not let Northwood Warminster help? We have a range of property management schemes available depending on your needs. One service that landlords find particularly attractive is our Guaranteed Rent scheme, providing a guaranteed annual rental income, delivered on time every month whether the property is let or not. To find out more, give our team a call on 01985 220 290 or email warminster@northwooduk.com.
* The content in this blog does not constitute any form of independent professional financial advice, recommendation, representation, endorsement or arrangement by us and is not intended to be relied upon by you in making (or not making) a specific investment or any other decision.
