If you’re looking for a great way to earn a passive income, you’ve probably already considered the possibility of property investment. Indeed, investing in property has long been a popular option for investors who want to expand their portfolios.
Yet, while in the past the property market only held true investment potential for the very wealthy, increasingly it is opening up to a wider cross-section of people who are keen to make money while exerting minimal effort themselves. Here, we take a look at some of the benefits of property investment.
Property Investment Can Generate Rental Income
Investing in buy-to-let properties enables you to receive rent from your tenants every month. Even if you’ve purchased the property with a mortgage, you can still make a profit on your investment that can increase your own household income or even generate sufficient funds for you to live on depending on the extent of your investment.
Buy-to-let properties are an especially good investment with a view to retirement as they can generate a comfortable sum to live on as an addition to your pension. Since increasing numbers of individuals, couples, and families are now living in rented accommodation due to the lack of affordable homes in the UK, there is a very high demand for rental properties of all types, from single-family houses and apartments to HMOs (houses of multiple occupation).
Therefore, you should have no difficulty in finding suitable tenants to minimise voids and maintain an ongoing income every month.
Alternatively, you could invest in holiday let properties which have also seen greater demand in recent years as increasing numbers of people choose to take their breaks in the UK. This is another lucrative market that can generate an attractive income, especially during the peak holiday periods. As an added advantage, you could also use the property yourself whenever you aren’t renting it out.
Making A Profit on A Resale
One popular form of property investment is property refurbishment and resale – purchasing a low-priced home that requires renovation, making the necessary improvements, and then selling it for a profit.
This is an excellent strategy as it’s possible to make some impressive returns on investment as long as you choose the right property, the right area, and don’t underestimate the amount you’ll need to spend on renovations. Since it’s possible to purchase investment properties in some areas for surprisingly low prices, this strategy opens up the possibility of property investment to everyone.
It’s important, though, to avoid one of the most common property mistakes – expecting short-term gains. Successful property investment is about long-term returns. Nevertheless, house prices in the UK are on the rise in many key regions and it is predicted that the average property price in the UK will have increased by over 20% by 2025. Investors who are willing to invest time as well as money are sure to reap excellent benefits.
Although there are taxes involved when you invest in property, there are some excellent tax benefits too. Often, interest on property investments is tax-deductible, with many costs relating to managing and owning a property able to be deducted.
For investors who already have a portfolio containing various assets, property investment is an excellent diversification strategy, enabling you to spread your risks across several assets. With so many different options within the property market to choose from, you can easily build up a diverse and lucrative portfolio of investments.
Hands-Free Property Investment
One of the top benefits of investing in property is that it’s possible to make financial gains without putting any effort in yourself. Thomas Henry Property Investments invests in and develops properties for investors who are keen to take a hands-off approach.
Whether you need assistance to find the right property investment project for you, or whether you’re seeking refurbishment management, we can offer you the expert help you need, no matter whether you’re an experienced investor or a newcomer to the property market. There’s no better way to get started on your next property investment than by getting in touch with our professional team today.