Investing in property shouldn’t be an off the cuff decision. If you’re looking to get into the UK property market, then the chances are you have an investment strategy in place to build a portfolio. Property often provides long term gains, but of course, these aren’t guaranteed and should form part of a longer investment strategy. Some may use property investments to help secure their finances for the future, as the UK state pension isn’t high enough to provide a comfortable retirement plan.
Buy to let property can be a practical way to save for a carefree future, but like any investment, be careful with your planning and work with or speak to property experts where possible.
Is 2020 a Good Year to Invest in the UK Property Market?
Buy to let investments will always be at the forefront of most portfolios due to their potential to provide two forms of income – capital growth returns and passive rental income. This type of investment often works better as part of a long term strategy where rental income has time to increase. In the current market, UK property prices continue to rise, and rental yields have increased significantly in key areas such as the north of England. They are set to continue growing, making 2020 a great year to invest in the UK property market.
Buy to Let Investments
If you’re looking for high rental yields, long term growth, and an asset you can leverage, then buy to let is probably the investment for you. These types of properties are usually relatively straightforward and easy to understand as investments, although you still need to consider the pros and cons before making any decisions. UK tenant demand is at an all-time high but making a profit on investments is not always risk-free, so it is important to do your research to make sure you’re getting the highest returns possible. Look for further advice from UK property specialists RWinvest, as their investments often come with assured rental yields which means the investor will definitely get a set amount of return for a number of years.
2020 Offers Great Rental Yields
Rental yields will vary over time, and at the moment the UK property market average sits at a stable 3.54%, with some areas of England reaching phenomenal yields of up to 10%. Good rental yields should provide you with a positive cash flow to cover maintenance of the property and mortgage interest repayments as well as giving you additional income as an investor.
When looking for a location-based on rental yields, you’ll want to find areas that are forecasting excellent tenant demand to deliver consistent rental income, and in 2020, this continues to grow across regional cities such as Liverpool and Manchester giving above-average rental yields to investors.
Risks of UK Buy to Let in 2020
Any risk factors need to be considered before investing, especially when it comes to property, as with this investment you may need to rely on other people such as developers and construction workers depending on the buy to let you choose. Another factor might be downturns in the market which can impact in a negative way on an investment. UK property typically shows growth over a long period of time, although it’s appropriate to issue certain caveats here such as choosing the right location and having consistent tenant demand.
Finally, you also run the risk of void periods when it comes to property investments or any investments for that matter. If you struggle to generate rental income, these periods can be detrimental to an investment portfolio.