Making a residential property investment is an excellent way to benefit from capital growth or a slow but steady rental income, should you choose to enter into the Buy to Let market. When accompanied with a good level of leverage, it is possible to achieve a significant wealth. Here are a few of the reasons why investing in residential property can be advantageous:
1. A secure investment
It is much more difficult to lose money in property than it is, for example, in the stock market.
As with any type of asset, the value of residential investment properties can go up and down. However, when again compared to the stock market, buying residential property offers a considerately higher level of security and any bank will tell you the same. But if you don’t want to become a landlord or purchase a property to use as your home, there is always another option. You can buy an inexpensive property which is in need of improvement, spend a significant amount of money on getting the property to high standard then sell it for a higher price.
2. A growing income
Getting a foot on the buy-to-let ladder has its obvious advantages. Find the right property and you could receive a steady source of income for a very long period of time. Due to the world’s current economic climate, many would-be buyers are holding off purchasing property until the residential investment market is in better condition. Therefore, rental accommodation is in demand, making now a good time to become a landlord and residential investment property companies such as IPIN, can carefully guide you through the process.
3. It could make you rich
A high percentage of the world’s richest people got where they are today by investing in residential property and it is likely that those that didn’t, will have ploughed their newfound cash into residential or commercial property. Using property to increase one’s wealth is becoming more and more common and contrary to popular belief, you don’t need to possess millions to get started. Many banks will lend as much as 100% if not more of the price tag of the property you want to buy. However, to qualify for this, you must have a steady job plus some starting capital, which can come from spare equity in your home.
5. Cheaper than commercial property
If you intend to create an investment portfolio that showcases a variety of asset classes, bear in mind that residential property typically costs much less that commercial property. However, due to the lower risks and smaller price tags, profits from residential property can be lower which means any return on your investment will mainly derive from increased capital value.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.