As house prices continue to rise at an unprecedented rate and demand continues to outstrip supply, many property investors ask themselves the same question: Is property investment a wise move this year? Our latest analysis shows that it depends mainly on where you choose to invest your money.
Here we take you through the trends in the property investment market in the UK and USA and help you make up your mind about whether property investment can be a worthwhile long-term financial decision.
In brief (Best Property Investment Books UK)
The Office of National Statistics has reported that UK house prices increased by 5.4% in 2016, taking average prices to £216,000 – around £30,000 more than in 2015 and marking their highest level since 2002.
In London, which is enjoying an unprecedented wave of investment due to its desirable status as a global financial hub, values have soared exceptionally high: over 20% in 2015 and 2016.
With house prices at a 15-year high and no sign of slowing down, property investment is an excellent long-term option, provided you’re prepared for plenty of hard work. The government has introduced several measures over recent years to assist first-time buyers in buying their own homes.
UK property statistics
According to Land Registry figures, house prices are at a 15-year high in many areas of England and Wales. So should you rent or buy now if you’re looking to get on to (or stay on) the property ladder?
Here’s how to make an informed decision.
The predicted state of affairs this year
Today, London house prices are higher than ever. I believe that in five years, we will look back on 2018 as the year it all began to change. Why do I think so? Well, first, there is Brexit and its consequences.
Second, rapidly rising property values over recent years have made British homes less affordable than they were two decades ago.
What this means for property investors
Now more than ever, Britain’s property market is seen as an attractive place to put money. As such, many are speculating that prices will continue their upward trajectory, and investors may look to buy real estate in preparation for higher returns over coming years.
However, it is essential to remain mindful of potential hurdles in interest rates and inflation – particularly when factoring in other changes set to be made by government bodies in 2022.
What it means for you (Is Property Investment a Wise Move?)
If you’re looking to invest in property, it’s worth keeping an eye on several factors that can influence your strategy. Chief among these are stamp duty changes, taxation adjustments, and potentially falling rental yields – all of which could significantly impact how you’re able to approach investments.
Home prices reached a 15-year high in December 2017 despite stamp duty increases on second homes and buy-to-let properties; rents have also been rising steadily since 2016, making property ownership less desirable from an investment standpoint.
Where to go from here
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