5 Great Reasons to Invest in UK Residential Property

October 20, 2020 7:15 pm

It may seem daunting to make a commitment such as investing in property within our current climate, however, we believe now is the perfect time. Coronavirus has had a multitude of impacts on a selection of industries, but we feel its mark on the property investment industry is one to view positively. Our blog outlines our reasons for believing now is the right time to invest in UK property.


Population

The uncertainty created by current events has led many citizens to opt for renting their home over owning - this is predicted to be the choice of 20% of the population by 2023. As a result, the upcoming generation - Millennials - have been branded ‘ Generation Rent’. 

This paired with the UK’s growing population means there will be an increased demand for housing over the coming years. With this in mind, now is the perfect time to invest in UK residential property and through working with Borland Property you can do so at your leisure.

Specialising in property sourcing allows our company to take control of your investment process, freeing you up to place your focus elsewhere. 



Pricing

With recent events, the Government has introduced a tax holiday - allowing a break from the Land and Buildings Transactions Tax for investors in Scottish property (Stamp Duty holiday in England and Northern Ireland and  Land Transactions Tax holiday in Wales). With this being available on properties up to £500,000, opportunity is opened up to many. 

Prices continue to fluctuate throughout this crisis - consequently creating a multitude of further opportunities. 

Meanwhile, the effect of Brexit on the UK has led to a drop in the value of the British Pound. This news gives overseas investors ample opportunity to invest in UK property and gain value for their money. 

Example

We recently secured a property in Central Glasgow, with great transport links, for one of our investors. This property comes with great opportunities - increasing kitchen capacity whilst adding an extra bedroom with an en suite bathroom attached to the master bedroom. 

This property was purchased at £65K. After the property refurbishment, converting the kitchen and adding an extra bedroom, this property finished on an estimated done up value of £125K. 

With these changes, our investor gained an incredible £23,510 profit - an amazing win in a market like today’s. 


Economy

Economies around the world have been impacted drastically by this pandemic, causing adverse effects on almost every industry. This being said, property is an industry that continues to be a safe bet - people will always need a home. 

In a recession it is important to keep money moving. By investing in property you contribute to keeping both the industry and the economy moving. 


Simplicity

Unlike other forms of investment, we find residential property investment is a safe bet during these uncertain times. This is a style of investment banks are confident to lend against, offering up to 95% of property value.

With access to property sourcing companies such as Borland Property, there is little responsibility for you, taking your stress away. 



Benefits 

With property investment, your assets increase in value over time, earning you more money as the years go on. Property is one of the only industries that continues to thrive in an economy experiencing inflation.

In today’s world of uncertainty this security is everyone’s goal.


For experienced investors, investing in residential property is a great way to diversify your portfolio, spreading out risk, appealing to lenders. 


Conclusion

Investing in residential property provides you with great opportunities, especially in a market such as the UK’s. With a growing population you are presented with an array of opportunities now and in years to come

With the demand for housing growing, there will always be an opportunity for your portfolio to grow and to earn from your investments. 

The effects of Covid-19 and Brexit on the UK economy have brought good news for overseas property investors in that the decreasing value of our currency brings them higher value for their money. 

These factors also mean investors are almost guaranteed to see a return on their investment in years to come as the value of property appreciates, regardless of inflation or a recession - meaning your money is more likely to be safe. 

However, the benefits aren’t limited to overseas investors, UK investors can take advantage of our nation’s climate via bank loans. In a market like today’s, banks believe property is the best investment to lend against, making approval increasingly likely. 

Lenders are more confident in lending against a residential property investment than other ventures, freeing up more of your budget when you purchase your property. By adding residential property to your portfolio you also increase your opportunities as a result of diversifying your investments.

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