Commercial feature

Property values have peaked and dipped in recent years, and now we are at a stage when the economy is stabilising enough for prices to start to rise again. UK house prices have outperformed many of their European counterparts despite the financial crisis, which is reassuring to buyers in that they are investing in a market which will see them get a good return.

Another reason why more people are opting to spend on property is because it is a long-term investment. Although the market has been changeable of late, there seems to be a shift towards stability and a renewed faith in the UK economy that has seen a slow but steady increase in the number of mortgages being taken out.

With more people doubting the pensions and stock markets, “bricks and mortar” is definitely one of the more attractive investment opportunities around.

There is always the worry that you will get back less than you have put in when you put money into property. However, there has been an increased demand for rented accommodation of late so it is best to look to the long term and see that buildings are a safer option.

Buying houses, flats or business premises to rent out as a financial venture involves many costs, such as maintenance, service charges, furniture, tax, tenant deposit schemes, management fees and house insurance. Every investor worth his salt who chooses to play the buy-to-let game knows he has to pay these expenses.

However, the key to really sound property investment is good location. Many people purchase in their own locality for convenience. Unfortunately, this isn’t usually the best choice. Experienced investors are more interested in an area where UK house prices look set to increase rather than owning something near to where they live.

A good area to buy in is one that is said to be “up and coming” – meaning it is likely to be developed in the future. This way, you can acquire properties at a cheaper price, while benefiting from it later down the line. Increases in the building’s value or rental income as the area grows create a great opportunity to make money.

Owning somewhere that you let out is easy to monitor and oversee, meaning you can take full control of your asset management. If you prefer someone else to do the work, then there are people and agencies set up specifically for just that.

It also seems that the UK is one of the best places for opportunities to make money in rental accommodation as house price growth has outperformed Australia, Canada and the US over recent years. This, coupled with the fact that property investment is not a fad but a viable and proven way to get a good return on your capital, means that the UK has seen an increase in the number of people making a foray into the market.

A property investor clearly knows that purchases will not bring riches overnight. If this was the case, then everyone would be doing it. To be successful you need to identify up and coming areas to maximise your long-term returns and to come up with a workable venture plan – then stick to it.

There are many advantages as well as a few risks involved, but it’s not at all surprising that so many people turn to property when looking for investment opportunities.

UK house prices have started to settle down so now is a good time to purchase property as part of a long-term investment plan.