Despite the financial landscape changing significantly over recent years, the property market has remained unchanged. This is good news for anyone looking into property investment, and those who are potentially wanting to become a first-time investor. However, what are the reasons that people choose to invest their money in buy to let properties rather than other available opportunities? The UK buy to let market is robust and reliable, but that isn’t enough to invest your entire life savings into a property or take out a buy to let mortgage. Property is among the best asset classes, but why is this? Below is a list of just a few reasons to invest in buy to let properties.
High rental demand is set to continue with population growth
A critical aspect that property companies emphasise is that rental demand is rising. This is due to population growth and young people flocking to city centres. The regeneration of city centres has a significant influence on the demand set for these properties dotted around. With developments in various Northern cities, RW Invest is vital players in property investment. Their properties are mostly apartments catering to young professionals and students wanting somewhere with accessible transport links and stylish decor. As the population continues to grow, this rental demand is only set to rise. University hotspots are particularly good for buy to let properties; these include cities like Liverpool, Manchester, and Nottingham.
House prices will carry on increasing
It’s predicted that house prices in the North West will rise by 14.2% between 2018 and 2022. Despite whether it’s buy to sell or buy to let, anyone with a property will have huge gains on their investment. Those of you who are planning on letting out a property for a few years before selling it on will see a significant benefit in that you may buy a property for as low as £50,000, and then go on to sell it for double the price in future. Plus, an added bonus with property investment is that, if the market falls or stabilises, you can keep hold of the asset until the market rises again.
Outperforms mainstream assets
Unlike stocks and shares, property is a secure and stable investment. Plus, it has been consistently exceeding other mainstream assets for over a decade. Buy to let properties are often considered the best option in the current market, which is why everyone seems to be investing! During this time, when interest rates are historically low, it’s essential to learn more about the lucrative property investment market.
More people are choosing to rent
Between 2007 and 2017, the percentage of people renting rose by 7%. This means that currently, over 20% of the UK population rents their home. It’s predicted that over the next five years, more young people and the elderly will take their turn at renting a property. Some older people are choosing to sell their home and live in rented accommodation as it poses less risk, but young professionals are renting due to less availability of mortgage deposits and help with buying properties. Despite this, it’s still good news for buy to let investors as more people continue to rent home and look for rental accommodation, the demand will continue to rise.