When you are thinking of investing some money there are multiple things to choose from. You could leave it very safe is a bank and make next to nothing. You could risk it on the stock exchange, which can be lucrative but can also lead to heavy losses, or you could invest in property. As a long-term investment, you cannot beat the returns property will give you and there is no better time to get started than right now.
Good Rates Of Interest
You can start your property investment with a lot less money than you may think, in fact in some cases with as little as £500 as this rich uncles reit review shows. There is no other investment where you can purchase something for say £150,000 and that you can borrow most of the money at a very attractive interest rate in the form of a mortgage.
No lender is going to let you have that sort of loan to risk on the stock market for instance, and if by any chance you found one that would, they would charge of really high rate of interest because of the risk involved.
That is one of the beauties of investing in property, there is very little risk and it is estimated that in the UK you can currently expect the value of property to increase by 12% a year. That is on top of any rental income you make. Find yourself a fixed rate mortgage while rates are so low, and you are onto a winner.
There is no other investment that you can buy, improve and increase its value. With shares, bonds or anything else of that nature, the value is out of your control. But with property, you could buy something derelict, spend time and some cash on it, and when you have finished the work the value will have increased straight away.
The opportunities are there for you to increase the value of any property you buy if you want to improve them. It is not always needed.
Trust Built With The Lender
Once you have been successful with your first property it is much easier to make more money by adding more to your portfolio because the lenders will have more faith in you. The profits from number 1 can be ploughed into number 2, and then number 3 and as many more as you want. Over a few years, you could amass several properties, each one getting more valuable every year.
It is no accident that property is one of the most sought-after investments in the UK at the present time. There is more competition in the buy-to-let market than ever, from both investors and lenders. The investors are looking for the properties, and the lenders are after the mortgage business, and between them, they are making the market very buoyant.
The prices of property increases all the time, and next year it will be dearer than it is today. Don’t wait till its gets unaffordable, start your property investment portfolio straight away.