There are some people that believe that believe investing in property is the most compelling of all the investment strategies. Investing in property has become fairly popular in recent years despite the fact that house prices seem to rise more than fall. People tend to rent out the properties that they buy as an investment strategy for the future.
It’s a smart strategy, as you get the chance to either take back the property to live in yourself, or you can sell it on to companies that state, ‘we buy any house’, meaning there is cash to be made whenever you see fit. There are a lot of reasons that you should invest in property, and if you are feeling confused about it, then check out our list below:
- Adding Value. When you have a house that’s yours, it means that you don’t have to get permission from a landlord or an authority to make changes (aside from a local council when you extend it!). You can add a ton of value with a refurb project or an extension via the loft or a conservatory. You could even buy a fixer-upper investment property and raise the value this way, selling it for a tidy profit and moving onto the next project once you’re done.
- Tangible Asset. Unlike shares or stocks, a property is a physical asset. You can live in it, make changes to it at your own pace and budget and you can feel comfort in an investment that you can physically touch. You know exactly where your property is, you know who is renting it from you and at any time, you can sell it and move on. There is a security in that!
- Low Interest. Currently, interest rates are at an all time low, which means that many are able to refinance their properties and buy more houses to do up. Doing this grows your portfolio as a property developer and gives you more of an income in the future.
- Passive Income. Owning a property and renting it out gives you a lifelong passive income. Generating a passive income that pays the mortgage on the home plus a little more means that you can enjoy a little more of what life has to offer without too much of a strain on your regular bills and expenses. You don’t even have to manage it if you don’t want to; plenty of property management companies out there are there to help when it comes to dealing with tenants.
- Inheritance. One day, you may want to leave something behind for children. Knowing you’ve got a property out there that has been paid off over the years can give you that inheritance that you’ve always wanted. This can be passed over before you pass over, or you could wait until after then to bequeath it to your children.
Ultimately, your property investment has the possibility of changing your whole future. Property investment is a smart plan today which gives you more of tomorrow.