Investments in property uk are similar to other investments UK in the fact they are financial assets. However, the profit potential is more limited as these investments are not as liquid as shares and so have something of a ‘ stocking’ of potential customers. As with sell my house for cash fast Leeds
The UK property market is now being buoyed by an improving economy, reduced house prices and interest rates. This means that there are some excellent investment opportunities in the marketplace as clients are seeing investment property in the UK as a reasonably safe way to invest in the property market.
The financial investment nature of property uk is that it is a long term asset. It can exist under a number of different forms and in a number of different circumstances. Compared to other forms of investment such as stocks and shares, it is much easier to understand its financial basis and has therefore attracted more attention over the last couple of years.
Property investment is only one of a number of factors that determine the value of property uk. Following the financial markets, the demand for housing increases over the years and so the price of a certain type of property against this demand is a prime determinant. In the current market, theEV Cardiff House Price index shows that houses in Cardiff have risen by an average of 47% over the past decade.
Investment property uk is often purchased as a long term cashflow investment as the property is likely to increase in value, in addition to being a cheap means of borrowing to use in conjunction with low interest investment mortgages. Depending on the type of properties purchased rental income may be the main method of fund raising.
The type of property and location play an important role in determining its long term financial value. Although house prices in Cardiff have risen at an average of 47% over the last decade many have seen 25%+ increases and there are thousands of properties available in the market. The types of properties include;
Portulture: These are properties which have had the wall built on them to create a single level living environment usually with a front en-suite bathroom. Some will have car port access.
Old Houses: These are properties which have had internal refurbishments and are usually one storey with the living area extending to the rear.
New Houses: These are properties which have had no refurbishments and are therefore almost new with modern energy efficient features.
The supply and demand of properties in a certain area determines their market value. For example, an area with a shortage of housing will generally under-perform in terms of its value overall. Conversely, demand in an area for housing should rise as it will increase in proportion to the amount of properties available.
When investing in property uk keep in mind the following points:
One of the largest and most known problems for investors buying property uk is the speed at which individual investors can lose monies and even title to their homes. Although this may not happen to you if you follow a solid investment strategy, you should be aware of the situation and take the necessary precautions to protect your investment.
An investor’s home should never be at risk for any reason, whether it is insurance, mortgage or legal. Never buy on emotion and never assume the Purchaser will make all the payments as they might not and they will know this by watching you!
When purchasing investment property uk, never ever buy from the son, daughter or brother of a deceased relative. There may be a number of different inheritance policies in force.
Never buy property with any bank finance or with you or anyone else who does not own the property.
Do not get involved in investment property uk unless you have been thoroughly audited.