Property investment has long been considered one of the most lucrative ways to save and invest your money. It is a lot more stable and secure compared to other options such as stocks and shares. Plus, it still gives a generous return. However, you do need a large amount of capital to start up (unless you’re willing to get a buy to let mortgage and these still require a hefty deposit). Those of you who have a considerable amount of savings may be wondering what to do with it and have landed on investing in a property.
We would recommend doing your research on how an investment property would improve your finances and how this will ultimately allow you to become financially independent in future. After all, investing your money is a great way to see returns and build up even bigger savings for the likes of retirement. Investing is so much more lucrative than allowing your savings to gather dust in a low-interest savings account over the course of the next few decades.
Below we have listed some of the many reasons why you need to invest in property and start seeing your money attract further returns.
It is a stable investment
Unlike stocks and shares and other investment types, property investment is stable and secure. There are many reasons for this, and the first is that while it has its ups and downs, the property market has a long-term upward trend. This means that while there may be dips in the road, this will recover in the long term and your property will make money and gain capital appreciation. The UK and other counties across the world have strong population growth which is outstripping supply, meaning there has never been a higher demand for housing, especially buy to let properties. Statistically speaking, the number of UK renters has doubled in the last 20 years, which is why so many people are choosing this form of property investment over everything else. In fact, over 35% of people living in England rent their homes rather than live in an owned home.
Property gains value
Capital appreciation is the increase in the price or the value of assets, including property. Over time, if you have chosen the best areas to invest, your property is sure to appreciate in value, which will mean when you come to sell it, you get all of your money back and make a lot of money too. However, to ensure your property gains as much value as possible, you have to have prior knowledge of the UK property market or speak to a professional. If you’re unsure of the best areas in the UK to invest and see your property appreciate, the northern cities have been reported to be the best in the country at the moment. Award-winning property company, RWinvest, have multiple guides, blogs and podcasts covering the best places to invest your money and how you can truly have a successful property investment.
You can benefit from tax relief
Property is ideal when it comes to tax benefits. While you may have to pay capital gains tax when you sell your property, there are a range of ways to claim back any extra money through a tax refund if you’re spending it on your property. The likes of renovations, carpets, and furnishings all apply when you’re looking into getting tax relief. Plus, you can also get a council tax reduction if your property is a student investment and you have tenants living there who are students.