The number of households in the UK is expected to go up to 28 million in the next two decades, meaning that there is and will be an increasing need for rental houses. During the same time, one person households will also soar, which will further raise the demand for housing stocks.
The United Kingdom is more crowded than most major countries in the European Union, which has led to the need for new properties each year to keep up with the demand. Demand for rental properties has doubled since 2002. The rentals are currently accounting for only 11% of the collective housing stock. This is great news for any buy-to-let investor. Here are 5 reasons why you should invest in buy-to-let properties.
For Your Retirement Pension
Pension schemes differ in their returns and success due to various reasons like location, employment and inflation. There is no guarantee that once you retire, your pension will cover the cost of living. Buy-to-let, on the other hand, can provide you with instant solid returns if you buy well. They can supplement and support any lifestyle you wish to adopt, making your retirement enjoyable and stress-free.
Consult a reputable property management agency as it will help you accomplish this by ensuring that the investment not only gives you income but also ensures that your retirement is hassle-free. A well-tailored retirement plan is essential for any person, and this is what an expert will help you put in place.
Better Than Having Money in the Bank
You can get more yields from buy-to-let units than with cash lying around in a bank account. Such an investment can achieve up to 7% pa capital appreciation. This is why brick and mortar investments are great since they are tangible. You can easily improve property through repairs and renovations when demanded. It also does not rely on the bank remaining afloat. Experts predict that more than 20% of houses in the UK will be privately rented in the coming five years. This is a great way to having money than just letting it sit in the bank where it can be rendered worthless in case of inflation.
It is a Safe Investment
Although all investments carry risks, a property is considered a safer choice when compared to other asset classes. The UK residential property industry has continued to perform well since people are always looking for places to live, which is not going to change. The traditional UK property market is continuing to enjoy more profits since there are many Victorian homes in the most favoured locations. Nowadays, people are not building the usual high ceilings and cornicing. This makes the assets more valuable than before. Owning traditional buy-to-lets in prime locations is one great way of owning a secure investment.
Great Source of Monthly Income
It is obvious that you will be earning monthly rental income from buy to let properties. With the ever-rising demand for rental properties in the UK, there has never been a better time to invest in buy-to-let houses. The population of this country is increasing with each passing day, and many people cannot afford to buy homes. This, together with a shortage of housing in the UK, has made the demand for rentals to skyrocket, which has seen landlords enjoy more revenues every month over the past couple of years. The demand is so high that landlords are getting the highest levels of rental income.
A Great Way for Capital Growth
In the long-run, your buy to let houses can create another source of income via capital growth. Property prices have doubled their value every half a decade, making many people benefit from big capital growth on their investments every couple of years. With the current increase in property prices, investors can only hope for better days. They can be happy to know that in the next few years, it will be possible for them to resell their properties at higher prices than they bought them. This makes buy-to-let property investment a great one for generating capital growth.
The above reasons demonstrate how lucrative the buy-to-let investment is. It is a great way to get a steady monthly income even after retiring. With the constant demand for rental houses, this is going to continue being a great kind of investment. Nova Financial can help you with advice on how to get the most suitable buy to let mortgages so that you can build a great portfolio.