Why Now Is The Best Time To Look At Buy To Let Properties
In past decades property investments were a great way to make the most of your money
and many homeowners and property developers benefited from rapidly increasing market prices. Since the credit crunch hit in 2008 the prices of properties have fallen dramatically and this has made many buyers cautious about investing in a property that may decrease even further in value. However, since there are more concerns over job security and reduced mortgage lending there is also an ever-increasing number of people choosing to rent property privately. This trend looks set to continue so it is probably a good time to invest in a buy-to-let property.
If you are interested in purchasing a buy to let property there are a number of important factors you should take into consideration. If you think you may need to re-sell your property a few years down the line then you could end up losing out if it has decreased in value. Current trends show that property prices are generally on the rise in the UK at roughly 1.3% for last year but this still does not even come close to the current rate of inflation that stands at 5%. Unless you plan on a long-term investment then your money may be better placed in a high-interest savings account.
It is important to remember that property prices and changes in property prices vary dramatically throughout the country. We are all aware of the north-south divide when it comes to property prices but it is also worth noting that while property prices in the south have risen by 5.4% they have in fact fallen by a whopping 9.6% in the north. The average difference in property prices in the north and south is shocking with houses in the south reaching asking prices of 336 743 compared to just 164 347 in the north. A property investment in the south is currently a much safer option.
Although there is clear north south divide in average property prices it is important to remember that there are still numerous hot spots that are benefiting from strong economic activity and hence increasing property prices. Factors like unemployment rates have always had a strong influence on property prices so try to look for a location that has a promising future in terms of investment and employment rates. The location within a city is important too so you should think carefully about transport links and the proximity of local schools and amenities to your property.