In recent months, property investing has been clouded by the gloom of the recession, but there’s still a big glimmer of hope for property investors willing to look beyond the negative aspects.
Here are five reasons why now is a great time to get going with investing in property.
1. There’s some fantastic discounted property available
This has to be one of the biggest bonuses of the fall in property prices. Many property prices are at rock bottom levels with 25% to 50% discounts on previous price levels. Now it really is possible to get that property investment bargain, without breaking the bank.
These excellent discounts generally aren’t available through estate agents, so you need to know where to look, or deal with an expert company, such as HBF Investments.
2. Rock bottom prices mean higher rental yields
Investors buying property now, at rock bottom prices, are benefiting from being able to obtain the higher rental yields. In fact, they’re some of the best yields for over a decade.
3. Investing in property is a less risky option than dabbling in stocks or shares
Property investing is often viewed as a risky business, but if you compare it side by side to investing in stocks and shares, where you can lose money in seconds if the stock market falls, investing in bricks and mortar is far less risky. It even seems to be a better deal when compared to investing savings into banks and building societies, as interest rates on savings are so low at the moment.
4. Property prices are likely to increase in the next five years
The rock bottom property prices can’t and won’t last forever and experts, such as David Coughlin of HBF Investments, believe that prices are likely to rise by 30% in the next five years. Nationwide are also predicting that house prices will be higher by the end of 2009.
So if you want to take advantage of the current favourable market conditions, you need to act now and get making your property investment – otherwise you could easily lose out.
5. Rental properties in popular areas are still in demand
Investing in property for rental purposes is still a great way of making a long-term investment. If you choose your property location carefully, taking into account local factors and the need for housing (perhaps there’s a university or hospital nearby, or it’s located near a popular school), you can successfully rent out your property, even during leaner economic times.
Source: David Coughlin – HBF Investments