Buying Investment Property

From the American Chronicle:

The barrage of negative reports about the economic outlook in the UK may have caused many consumers to feel nervous about the market. But surprisingly a recent survey from Nationwide revealed that the gloom doesn´t stop them from becoming more hopeful about purchasing a property. In fact professional property investors are actively snapping up investment properties at distressed sale prices.

The continued interest in buying bricks and mortar stems from the fact that property is one investment that holds many benefits. For a start, property has always been one of the best-performing investments in the UK. But apart from that, here are the other major reasons why property remains on the public´s radar:

Security is one of the major reasons why people purchase properties. Provided that they are up to date with their mortgage obligations, they can stay in their property for as long as they like. The fact that banks readily lend money to people to invest in property implies that the institutions perceive the investment to be one of the most secure and stable asset there is. Despite what doomsayers are trumpeting, banks are aware that the underlying pressures experienced by the market in terms of supply and demand signify that property prices will go on increasing, providing investors with long term security.

Investing in property offers stability compared to other forms of investment. While share prices can cave in in a matter of few hours, property prices are unlikely to move more than 2% each month. Add to that the fact that the housing market is strengthened by the fact that property is a necessity and people will always need somewhere to live. If prices spiral downwards, there will be fewer people who will opt to sell. Therefore supply immediately decreases and demand causes prices to become stable. You must make sure that you are buying in areas with good rental demand and stable prices.

Property allows you to add value. Property allows you to come up with all kinds of improvements that will help to enhance your asset´s value. Plus, when the property you bought goes up in value and you will want to have more home improvements in the future or if you want to make a major purchase such as a car, you can have your mortgage extended instead of having to apply for other more expensive types of loans.

Property allows for the release of capital without you having to give up your asset. If you choose to collect your profits you do not have to sell your property. You can instead remortgage it and have the capital released. The strategy allows you to keep your property earning income and growth.

With all the advantages that buying investment property provides, it becomes all too obvious that property is indeed a genuinely appealing proposition. But there is still a need for you to perform necessary research and due diligence to determine the right investment property for you at the right price and in the right location.