Why Now Is The Time To Invest In Property

 There are many ways to make money and one of the best in just about any market is property investing. However, it isn’t always easy to profit. It can take months of research to find the right location and property. Depending on your strategy, real estate can represent a great long or short term investment. However, there are many good reasons why you should start investing in property this year. It’s a buyer’s market which means that you will have the advantage when it comes to pricing and mortgage rates.

Keeping that in mind, let’s take a look at some of the reasons why now is the time to invest in property:

House Prices Are Still Rising- home prices are expected to rise by nearly 3% in 2020 and we can be sure that those prices will continue to creep up. If you use the right investing strategy, you should see a nice profit. It all starts by deciding which property that you can afford. You can calculate that by crunching the numbers with online mortgage calculators to figure out your monthly payments.

Mortgage Interest Rates Are Declining- mortgage interest rates went down in 2018 and dropped below 4% for other types of loans. In 2020, it is expected that mortgage interest rates will go down slightly to 3.2% for 15-year mortgage and 3.7% for 30-year mortgage.

Millennials Still Dominate The Market- millennials are those who born between 1980 and 1998. They are still the largest group of home buyers, at around 37%. Millennials are known to be tech savvy and they do intensive online research before investing in property. Virtually all millennials (98%) access online platforms for their property search. In fact, more than 80% of millennials managed to find their home using only mobile devices. This can make competition within a particular market rather intense. If you are serious about a property, you could end up in a bidding war which could affect your profit margin significantly. Still, it’s this competition that will drive up property prices when you decide to flip a property.

Real Estate Is In High Demand- real estate is currently in high demand and that demand seems to continue to rise. As a result, rental prices increase year on year. There are around 6 million households in private rented accommodation in the UK and that is expected to double in the next 10 years.

Real Estate Outperforms Other Income Sources And Asset Classes- real estate has consistently outperformed all other income sources and that includes stocks and shares. Every year since the early 1950s, house prices have increased by around 7.7% per year. UK property investors in the UK have seen massive capital growth over the long-term, while market downturns tend to be short-lived and provided exceptional investment opportunities.

There Are Many Opportunities In Real Estate- from corporate apartments, hotels and residential homes, to property management, land sales and new build developments, you can make money a variety of ways in the real estate market, making it ideal for all levels of investors.

Real Estate Is A Relatively Low Risk Investment- real estate can act as a pension pot, it can provide regular cash flow or it can be a legacy to leave for your children. Real estate is not just a wealth creation vehicle, but also a good way to keep your wealth. 

No Other Asset Class Offers The Opportunity To Leverage The Way Real Estate Does- unlike shares, you can borrow money against land and property, which enables you to recycle your funds, acquiring more property while repeating the process all over again.

Property Can Be A Passive Form Of Income- if done right, real estate investing can become a passive form of income for investors of all levels. You can hire experts to source the property and manage the refurbishment, get a building teams, project managers and estate agents to handle most of the work for you and earn a good income stream.

Contact Ezi Ezimokhai

   To learn more about the top real estate investment trends for 2020 or to learn how you can grow your real estate investment portfolio, contact Ezi Ezimokhai today.

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