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Why More Millionaires Have Made Their Money From Property In The UK
Five years ago the idea of saving and investing money was simple you could either put your money into savings accounts and ISAs to earn interest or deal in the stock market.
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In the last few years however things have changed. Interest rates have fallen and the stock market has underperformed. As a result many people have come to realise that their best performing investment is actually their own home.
They've found that their own property has made more money quicker than any other investment plan on the market today. This led to the question "What if my property investment was more than just my home? What if it was two three four or five properties?"
But property investment isn't that easy. You still need large deposits when buying and there's always the commitment to a mortgage in the buy to let market.
Thats where buying 'buying Off Plan' comes in. Off plan purchases have provided spectacular returns over recent years for thousands of investors who've been savvy to this 'insider information'. |
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How Does An Investor Make His Money |
Buying off plan means securing a property on a new development by placing a small deposit (usually 10%) before the property is completed, often before construction has started. It can be a good investment because some developers are prepared to offer a discount or incentive to potential buyers at this very early stage. There is also the potential for capital growth during the build period which may last as long as 2 years.
On completion, the property can either be sold at full price or rented out as a buy-to-let for further long term capital growth. Investors who usually sell (flip) before completion can make big profits because of the 'leveraging' concept of only using a small deposit. By putting down a small deposit but getting the full profit at the end of the sale, you maximise your returns. |
Buy To Let |
People who purchase properties as buy-to-let investments are usually looking for long term capital growth. The idea is the property is bought and rented out so the rent covers the mortgage cost plus a little extra. As time goes by the property value should increase and create more wealth for the investor over the longer term. |
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Property Facts You Never Knew |
- House prices have increased 9.5% a year on average since 1956. (source: DataStream).
- Property growth is doubling on average every 6.2 years.
- The UK buy-to-let property market now represents only 11% of the housing market. ARLA predicts that this figure will rise to 20% by 2020.
- Fewer new houses are being built than at any time since the 1920's.
- More millionaires in the UK have made their money from property than any other individual investment source.
- Presently, there is a housing shortage in the UK with demand for new homes outstripping supply.
- Rents have risen on average 13% pa since 1962 (Office of National Statistics).
- Over the last 32 years, property has risen in 28 of the years and only fallen in 4. (Dept. of Records).
- The National Builders Federation says that about 60,000 more households are being created annually, than there are homes to accommodate them.
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We have both Off Plan and Buy To Let investment opportunities available call or email us for more information. |
