The property market is relatively stable and, unlike many investments, is not subject to
rapid overnight fluctuations.
Investment in property is a safe investment provided the correct approach
is adopted.
A Tangible Asset
Property is
a tangible asset that gives people control over
their future. Historically, residential property has increased in value
by over 11% per year (on average) which means it has doubled in price every
5-7 years and should therefore be viewed as at least a medium-term if not long-term investment. Although there will inevitably
be short term fluctuations in market prices, property investment has always provided a consistent long term store of value for anyone
who owns it.
There are a number of different
reasons why residential values have
seen such strong growth, but most
of them come back to the simple
economic principle of supply and
demand - there is an overall
shortage of suitable housing in
most parts of the United Kingdom.
The Causes of Housing Shortage
This housing shortage has been
caused by a number of social and
demographic factors, including:
- House building at its lowest level since 1924, as the gap between supply and demand widens by 60,000 each year.
An average of 220,000 extra households created each year through longer life span, increased solo living (whether from
choice or an increasing divorce rate), and an increasing number of students in higher education away from the parental home.
Population growth resulting from immigration into the UK.
The Best Possible Return
When most people start to invest in property they spend too much
time looking at rental income. In fact rental income is really not
very important in relation to return on investment. The real profit is
to be made in capital appreciation and so long as rental income will
cover mortgage, insurance and letting costs you can almost ignore it.
There are three main sources that need to be considered:
- Capital appreciation (increase in housing prices)
- OPM (Other People's Money)
- The power of compounding
James Green & Co can get you off to a flying start by showing you
how to invest in property at a discount - locking in instant
capital appreciation. We can show you how to use
other people's money
to make your investment so that you gain capital appreciation on their
money as well as your own. The power of compounding is automatic..
Interested? Then click here to find out more.
|
