In today's tempestuous climate it can be a challenge to know the best area in which to invest your money. The stock market is up and down like a yo-yo, and those with money invested here are definitely in for a rough ride for a while yet.
Historically, property has always been the safest long-term investment for your money. And with the rental market once again showing good signs of recovery it can also provide you with an income.
One major reason UK property is such a great investment is simply supply and demand. The UK is an island and as such there is not an unlimited amount of land on which to build. T
he fact remains that there are not enough houses already built or being built for the amount of people who want to live here.
When it comes down to investing, most of us have short memories. We all remember stock market and housing market crashes, and these can understandable make us cautious. But what we fail to remember are the strong periods of growth which lead up to these crashes. When these ups and downs are looked at over the long-term then over the past 30 years, investing in property far outperforms investing in the stock market.
However, there is a caveat to this. Investing in property, especially buy to let property, is not something to be entered into lightly. Gone are the days when you could get 100% buy to let mortgages, stick your property on the market and have a tenant in within days.
But - and this is a large but, buy to rent now is still a worthwhile long-term prospect as long as you do your homework first. And with the volatile state of the world's stock markets right now, the canny buy to let investor can come out a whole lot better off.
Data taken from the government and analysed from the past 20 years showed the difference in yield from an investment of £100,000. Those who invested in the stock market would see their stake worth £302,253. But those who invested in buy to let would see their stake worth £786,792. Okay, this data doesn't take into account the turmoil over the past couple of years, but it makes a point of how much buy to let can outperform the stock market.
So considering a buy to let property really is a viable proposition for the long term. Ensure that you research both the good points and the bad - know the possible pitfalls and buy for the rental income, not short-term capital growth. If you are careful and let the rent build up over time, eventually your aim should be to pay off the mortgage on the property. Then you will end up holding the property's full capital value - a worthwhile investment indeed.
Historically, property has always been the safest long-term investment for your money. And with the rental market once again showing good signs of recovery it can also provide you with an income.
One major reason UK property is such a great investment is simply supply and demand. The UK is an island and as such there is not an unlimited amount of land on which to build. T
he fact remains that there are not enough houses already built or being built for the amount of people who want to live here.
When it comes down to investing, most of us have short memories. We all remember stock market and housing market crashes, and these can understandable make us cautious. But what we fail to remember are the strong periods of growth which lead up to these crashes. When these ups and downs are looked at over the long-term then over the past 30 years, investing in property far outperforms investing in the stock market.
However, there is a caveat to this. Investing in property, especially buy to let property, is not something to be entered into lightly. Gone are the days when you could get 100% buy to let mortgages, stick your property on the market and have a tenant in within days.
But - and this is a large but, buy to rent now is still a worthwhile long-term prospect as long as you do your homework first. And with the volatile state of the world's stock markets right now, the canny buy to let investor can come out a whole lot better off.
Data taken from the government and analysed from the past 20 years showed the difference in yield from an investment of £100,000. Those who invested in the stock market would see their stake worth £302,253. But those who invested in buy to let would see their stake worth £786,792. Okay, this data doesn't take into account the turmoil over the past couple of years, but it makes a point of how much buy to let can outperform the stock market.
So considering a buy to let property really is a viable proposition for the long term. Ensure that you research both the good points and the bad - know the possible pitfalls and buy for the rental income, not short-term capital growth. If you are careful and let the rent build up over time, eventually your aim should be to pay off the mortgage on the property. Then you will end up holding the property's full capital value - a worthwhile investment indeed.
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