April 19, 2024

Illuzzi Letter

Envisioning And Creating Your Dream Home

Five Reasons Why Property Investment Still Makes Financial Sense

So, let’s get straight to it and look at our top five reasons why property investment still makes financial sense, even in the economical situation that many of us find ourselves in.

High Rental Demand – Mainly due to the lack of lending that has helped to stall the sale market, renting has seen a massive increase in demand over the past three years, with even people that could afford mortgage but still not being awarded them turning to the rental market to find somewhere to live. Just because they cannot get a mortgage does not make them a risk factor, it is simply that getting a mortgage is so much harder these days, which means that if you have buy to let properties, you stand a good chance of making sure that they are tenanted.

Buyers Market – If you have money then this is definitely your market, because there are a lot of desperate sellers currently taking discounted prices for their properties, just so that they can move or complete the move they have been waiting for. This means that the market is definitely in the favour of the buyer rather than the seller, with lending and other costs impacting the market, allowing many avenues for the shrewd investors to really snap up some below market value properties if they can act quickly.

In Control Of Value – A fantastic aspect about investing in property is that you are pretty much in control of the value of the property when it comes to increasing the price that you want to attract when selling. For example, by adding new features or redeveloping the property, you can add extra value, even down to things like fittings and furniture. Unlike many other investments, you have the control and ability to increase the value, without having to wait years and years for its value to increase due to age or demand.

Low Risk Investment – Despite all of the doom and gloom and the red downward arrows on every news report your see, property is still a relatively low risk investment, which means over time, the chances of the losing money would be placed in the “low” category. For every type of investment comes a risk category, from low to high, so this means that you stand more of a chance of keeping your investment financially sound when you look at property as an investment.

Ability To Grow Quickly – One of the best things about being a successful property investor is the ability to grow your portfolio at the rate that you want to grow it. For example, some investors like to grow their stock a couple every year, where as others are out for a much faster road trip and will try to add a few properties every couple of months. Once you understand how property investment works, you can often develop a sound buying strategy that you can utilise time and time again to allow you to grow your portfolio.