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Property InvestmentsIn the last few years it has become more self evident that property investment is one of the most viable investment vehicles to achieving financial independence.
Buy to let property has been one of the great investment phenomena of the past 10 years in the UK. Investors now view this type of investment as a more appealing alternative to other types of investment for the medium to long term.

Three main factors make Buy to let more appealing to Investors:

Minimum volatility:
While the property market may experience a downturn due to economic cycles; it is unheard of that a property is now worth nothing as is the case with many investments. Property prices are mostly fuelled by the economy, both global and local; the price generally appreciates over time.

Potential for good Rental income (Yield):

The prospect of tenants paying the mortgage on the property that belongs to you and you still having a few hundred pounds extra are most appealing to Investors. This continues whether the property market is up or down; it is an added bonus when property prices are up and a great reassurance when property prices are down. Whichever way this constant stream of income continues to flow.
Steady Long term growth: The performance of properties has always been phenomenal especially in the medium to long term. With annual growth rates of 10-15% in property values, Investors are able to gain an overwhelming 100% Return on Investment in 5 to 7 years or less.

Demand for Buy to let properties:

There has been incredible demand for rental properties in the UK, especially in the last 10 years. This demand far outweighs supply, hence the sudden growth in the market to fill this gap.

These are the conditions that are responsible for this demand:

Immigration- into the UK, more so with the advent of the European Treaty allowing other Europeans access to the country. These people need to be housed, and since they are unable to get on the property ladder yet, they always need to rent.

Divorce Rates has been astronomical in recent years, leading to multi home families where Dad lives in a separate home from Mum.

High cost of getting on the property ladder- young singles and couples have to work for many more years in order to be able to save the deposit to buy the first house and get on the property ladder. In the meantime they rent accommodation.

Your Investment Strategy - LPS Estates Advice:

There is a risk associated with every investments; buy to let is not exempted from this. There is therefore a certain level of risk associated with buy to let investment; as an investor or potential investor it is therefore imperative that you assess the risks associated with your potential investment before you commit yourself to it.

This is our advice:

  • Invest only funds that you do not need immediately.
  • Decide, ahead of timer whether you want to invest for rental yield or capital growth, or both.
  • Be careful in choosing the location of your investment.
  • Prepare for eventualities like the temporary fall in the price (not the value) of the property.
  • Ensure that you have created a buffer zone in your finances for those void periods when the property is vacant, and there is no income from the tenants.
  • Be sure to plan your investment for the short, medium and long term.

At LPS Estates we are proud to say that we are experts at helping you through the potential minefield of property investment. With a dedicated Portfolio Advisor, we assist you with the planning, implementation and subsequent management of your investment. We bring to bear on each investment our 14 years experience in property investment and detailed research; and frank yet honest approach that has brought success to us and to many.