*Article contributed by Rosana Beechum.
Property investment is one of the most popular types of investment. With the ability to produce returns through both monthly rental income and capital appreciation, property is one of the most lucrative investment assets to consider. You might not even realize the potential property investment holds, so to help you understand, here are some reasons to consider property as your next investment venture.
Reasons Why You Should Consider Property Investment
It can boost your monthly income
By investing in a buy to let property, you open yourself up to the ability to receive regular rental income each month. Depending on the rental yields that your investment generates, this could be an attractive sum that boosts your income massively.
To ensure you’re receiving the best rates of rental income, make sure you research properties with good rental yields. This is largely dependent on the area that you invest in, with some cities and regions offering better yields than others. In the UK, the cities with the best reputation when it comes to rental yields are Liverpool and Manchester. These cities offer yields as high as 11.79 or 10.08 per cent in some areas, exceeding many other UK cities.
The success of these areas is down to the affordability of properties and the rising rental costs. Unlike London, property is cheaper to buy up North, while rental costs remain high. More people are choosing to live in Liverpool or Manchester than the capital as of late, which has boosted the already high demand for property. If you’re interested in making an investment in the north-west area, take a look at the properties on offer from RW Invest. These investment properties offer yields as high as 7 or 8 per cent and are located in popular city-centre spots.
It provides security for your financial future
Another benefit of property investment is its ability to secure better financial stability later in life. If you invest in a property that’s likely to appreciate in value, you can expect to sell the property for a higher price than you bought it. This is perfect to do during retirement, providing you with a large sum of money.
Alternatively, property provides an asset class that you can pass onto relatives or loved ones later in life. This is often more effective than just leaving your relatives a sum of money, enabling them to make regular income over a long-term basis.
To ensure your property appreciates in value, be careful to only invest in areas with potential for strong capital growth. Again, Liverpool and Manchester rank highly in the UK for house price growth. These cities have seen the best rate of growth over the years, with predictions for a further increase by 2022.
It could become a full-time career
If you’re sick of your current job and are considering a career change, property could be the perfect route to take. While it can take some time and a lot of dedication and knowledge, it’s possible to make property investment a full-time career.
If this sounds like something you’d be interested in, start slow and build up a property portfolio of lucrative investments. Consider your investments carefully, working out all the financial aspects and thinking about long term goals. If you need a helping hand, consider getting some guidance from a financial advisor who can help you get on the right track.
*Article contributed by Rosana Beechum.
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