Property Investment In The UK

By: Javaid Kiyani

Property investment in the UK has witnessed massive growth over the last decade.

A house bought 10 years ago, would be worth around 300% more today. If you were to look at house price growth over a longer period, youd be amazed by the results. For example, if you had bought a house in 1952, today it would be worth around 90 times more!

At an average growth of 8% per year, a house bought today for 215,000 pounds would be worth in excess of 1 million pounds in 20 yrs! 10 houses bought today for 215,000 pounds each would be worth an unimaginable amount!

Even today, as the market shows some evidence of slowdown, there are pockets of above average growth in certain towns and villages across the country. Its the job of the property investor to hunt out these areas and milk them for all they are worth.

When looking for property to buy in the UK, it is always advisable to do some research before commencing any viewings. Recent statistics on house values in any one particular area, historical data and local trends can help you to build a clear picture of the suitability of any one location for investment purposes.

A common misconception among novice property investors is that you can only really make money in property when house prices are going up in value. In this scenario, you would buy a property for x amount and resell shortly after for x+growth amount, pocketing the difference in value. If the market was flat, your property would still be worth x several months later, i.e. exactly how much you bought it for. When house prices are going down, your property would be worth less several months later, e.g. x-growth.

However, any experienced investor will tell you that you can make money from property investment regardless of whether house prices are increasing, decreasing or whether the market is flat. By buying well below market value, you would safeguard your investment from any short term economic trends that would normally affect your propertys value. You would also gain immediate equity in your property investment.

When deciding to embark on a career in property investment, as with anything else, you need to educate yourself. You can do this by attending seminars, attending courses and meeting others in the same field. Talk to real estate agents, brokers and lenders to gain a good basic understanding of current and future trends in property investments. Furthermore, take advantage of free online courses and material to learn the ins and outs of property investment.

Property investment is not rocket science. By learning and applying just a handful of basic principles, theres no reason why anyone cant benefit from the UK property investment market.

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