Is Property the Best Investment?
With constant talk about the property market being about to crash it can be easy to become worried. House prices are high and when you are committing to that amount of debt you want to be sure that your investment is a wise one. However, whatever the scaremongers may say, property is consistently a good option, just be clued up about your choices.
Rent FreeOf the main bonuses of owning your own home is that you don’t have to pay rent to anyone else. Although you still have the monthly expense, it will go towards your mortgage rather than somebody else’s. Instead of putting your money into a savings account, paying off your mortgage as quickly as possible and therefore paying less rent, is the best investment that you can make. If you are currently renting and finding it hard to save towards a deposit, consider a 0% mortgage or perhaps moving in with your parents temporarily to save.
Location, Location, LocationLocation is key when you are choosing a property. You need to think about how the area might change, what else could be built there and whether there is a demand for people to live in the region. If you can buy early in an up and coming area then you will get a good return on your property as the area gentrifies. Also, if there is a lack of land or restrictions on building then that limits new build and keeps prices up. Similarly, if it is near a university or area of beauty then there will always be an influx of people.
Long Term GainAlthough property prices may dip in the short term, if you keep your home for a long period of time then it will undoubtedly increase in value. If you want to move away from the area then it is always possible to rent the property out while maintaining the investment. If you know you will be wanting to sell the property in a few years time then you need to consider carefully whether you will make a good return.