Enlarge/Change font size hereA A A
Having money tied up in bricks and mortar is a stable, relatively low risk form of investment. However, property investment still requires a good level of management to ensure that money does not go to waste, and all too often people underestimate the challenges. Here is a short review of the property investments today.
The property market is seen by many as a lucrative place to invest, with a vast range of categories and prices available. Since property prices have been steadily rising over the years, investors are often confident that they will see a good return on their investment.
If letting a house, people often get buy-to-let mortgages which are specifically aimed at landlords. These necessitate a good plan and budget, as they often charge higher rates for repayment and can vary based on the income you receive from tenants. It is therefore worth doing a good amount of research before purchasing a property to let.
The low mortgage rates that currently exist in the market have often been an attractive element of the current market. Low rates, however, are bound to rise at some point in the future, so this must be factored in to investments to avoid financial disasters.
From April 2016, landlords also have had to pay an extra 3% stamp duty when purchasing their property, making investment a more expensive venture. It is crucial that investors keep an eye out for changes like these, as staying vigilant will prevent unexpected shocks to finances, and allow smoother management thereof.
It can be difficult for some to get to grips with the amount of planning involved in these investments, especially when starting out. Financial services such as those offered by Tilney can provide a useful breakdown of all the planning, budgeting and expenditure which comes with property investments.
It is essential that every cost is catered for, and that investors know all the charges and technicalities so that they can factor them into their budget. Once everything is mapped out with all potential future changes accounted for, investments are much easier to manage.
Investing in property can be plain sailing provided your plan is sound and you have done ample research in your market. Going in blind can be a real danger to finances as well as success, especially with potential changes being implemented in the future.
Most Users Ever Online: 755
Currently Browsing this Page:
Mary Latham: 2194
David Price: 1687
Patricia A: 999
DATA CONTROL: 971
Guest Posters: 2590
Newest Members:shanshanshan, smartrent, vector84, mickey, anne66, christinefoley
Moderators: SamiiB: 457, News @ Tenant Referencing: 1623, laura: 15, Chloe: 107, lucybarr: 0, jaswhite: 20
Administrators: Paul Routledge: 3418