Why Invest in Property?

October 2022

Why invest in property

With the current economic climate, many people are looking to invest their money wisely. Property is often seen as a safe investment, and there are many reasons why this is the case. In this blog post, we will explore some of the key reasons why investing in property can be a smart move. Whether you're looking to buy your first home, buy to let or develop a property portfolio, we hope this blog post will give you some food for thought.

Investing in property is a great way to secure your financial future

Investing in property is a smart move for those looking to secure their financial future. In the UK, there are a multitude of opportunities that range from uk property: residential, new-build and mixed use developments, as well as existing homes. Additionally, there are potential commercial conversions of offices to residential properties and houses of multiple occupancy (HMOs) which often offer lucrative returns. With the right strategies employed, investing in uk property can be an excellent choice for those who want reliable financial security going forward.

Property values always go up over time, so you're guaranteed to make money on your investment

UK data suggests that UK house prices have increased significantly year-on-year since records began in 1968. Between December 2018 and December 2019, UK home values rose 4.2%, according to the UK House Price Index, with the South East of England leading the growth at 5.3% and Scotland trailing behind at 0.4%. Property values tend to follow an upward trend even when markets are volatile, making them a relatively safe bet for those looking to invest their money in real estate. With high UK growth, it is likely that property investments will only continue to make money in the years to come.

With proper care and maintenance, your property will continue to increase in value

Taking proper care of your property can help it to grow in value over time, as well. Regular maintenance like cleaning and repairs--along with improvements like landscaping and painting--can add tremendous value to your home or business. When you make these types of investments in your property, they not only provide aesthetic benefits but also stability that strengthens its worth into the future. That’s why taking the time to attend to its upkeep is a savvy move for both immediate and long-term gain. So don’t be afraid of going all in on taking proper care of what you own—it will likely pay off in the end!

Adding value to your investment through property development

Property development offers many potential benefits to the savvy investor. From converting commercial buildings to making multiple dwellings out of a single house, development is an ideal way to add value to your investments. By developing existing properties into House in Multiple Occupation (HMO) units, investors can achieve excellent rental yields without having to purchase more land or expand significantly. Furthermore, development projects can bring about increased capital appreciation and yield improvements far beyond what could have been imagined with regular buy-to-let investments. If executed strategically, development may prove to be a highly rewarding endeavour for budding property investors.

There are many tax benefits to owning investment property

UK taxpayers who own investment property through a limited company may benefit from Section 24 and other tax advantages. This includes the ability to set certain expenses of owning the property against rental income, reducing overall liability when it comes to income tax. Limited companies also benefit from corporation tax, which can be up to twenty percent less than personal income tax rates. Additionally, depending on circumstances there may be opportunities to reduce taxes by structuring ownership of multiple properties under one limited company. Understanding the UK’s taxation laws and how they apply to investment property can be complex, but with the right advice UK investors could find themselves much better off financially than if they just relied on rental income alone - by taking advantage of the many tax benefits that are available for those who own UK residential property in a limited company structure.

You can borrow against the equity in your property to get extra cash when you need it

Borrowing against the equity in your property is an effective way to get extra cash when you need it. You can refinance your existing mortgage, or take out a new loan with a bank or other lender. For those looking for innovative ways to build wealth, consider using the "buy refurbish rent refinance" (BRRR) strategy; BRRR allows investors to purchase properties, fix them up, then refinance their mortgages and use that money as capital for investing. Borrowing against the equity in your property is a great way to expand your financial portfolio without over-investing financially.

If you're looking for a secure investment that will only grow in value over time, look no further than property development. Not only will your investment appreciate passively, but with proper care and strategic development you can actively add value to ensure significant returns down the line. And of course, there are many tax benefits to owning rental properties that make investing in property all the more attractive - it really is a smart way to secure your financial future. If this has piqued your interest and you want to learn more about what Savoys Properties can do for you, be sure to follow us on social media @savoysproperties where we regularly post updates on new developments and opportunities.