UK property investment can be an attractive way to maximize your savings even with fewer people today looking for proper guidance on how to go about this kind of investment. More young adults are renting out their homes as well as apartments and condominiums for long periods of time and the expectation is that many of the broader demographic will be renting permanently into retirement. There is also a real estate “bubble” that is occurring at the moment in most parts of the world including the UK. You can take advantage of some of these bargains, but you need a clear picture of what is realistically achievable in today’s market before you start on any property purchases.
In the UK, there are several types of UK property investments that might appeal to you. One of these is your conventional residential investment. These types of properties usually consist of apartments and houses that people rent out for part or all of the year and which therefore would not be accessible to tenants during the hotter months. Typical residential properties in the UK include townhouses, pre-fabricated buildings, row homes and other such developments.
Apart from these types of traditional residential properties, there are also UK property investment types that are more experimental and non-traditional in nature. For example, there are some investors that have been making a steady stream of environmentally friendly homes and properties, turning them around and then selling them again quickly and at low prices. Other examples of UK property investment types that are less predictable in nature are holiday home rentals and others.
The advantage of investing in UK property investments through buy-to-let schemes and short-term rental arrangements is that they provide investors with a degree of control over their investment decisions, but only at the moment of purchase. Most short-term residential investors are thus looking to increase their equity levels fast rather than over the longer-term. Buy-to-let investors therefore may be less fearful of UK property prices falling to ground and can therefore remain actively involved in the market for the long-term.
There are other UK property investment types that offer investors the opportunity to become involved in the property market for the long-term, but with slower growth rates. These include both residential and commercial developments. Residential projects tend to offer a slower pace of return but they tend to still be of a relatively high standard. This means that they will still be available for rent out to tenants at points in the future.
Commercial developments tend to be much faster paced. It is therefore quite common for commercial house prices to appreciate more quickly. If you look at the history of house price appreciation in the UK property investment types of investment you will see that the recent uptrend seen in house prices has generally been accompanied by an uptrend in commercial house prices. This is also evident in the figures released today by Nationwide. Although Nationwide’s figures are not as high as the figures released by the Royal Bank of Scotland and the BBC, it is still a positive sign that the UK property investment market is showing signs of potential growth.
Finally there are the residential and commercial investment types that offer the best long-term returns. The majority of people investing in UK property will generally choose to purchase either a property in the UK or one abroad. However, there are now some very strong incentives for people to buy property in the UK. The ongoing success of the UK economy combined with the continued availability of credit from the UK banks has meant that there are now many buyers with money to invest who want to take advantage of this good climate to buy. Some of these buyers are making the move to the country’s biggest city, London, in order to enjoy the stock market rise and the ease with which property can now be purchased in the UK capital.
One thing that many investors fail to realise is that the UK property market is now one of the most lucrative international investment opportunities currently available. Property is relatively inexpensive compared to many of its European counterparts and the ongoing success of the UK economy means that UK property is now seen as a secure investment option for people looking to take advantage of an improving global economy. This means that UK property is no longer seen as just a means of investment. Rather it has become a means of living – with many homeowners buying and maintaining homes in order to live the dream that they have always known their property should provide them with. If you have any dreams about owning a home in the UK, you owe it to yourself to find out more about the investment properties available to you today.