With interest rates still low and bank accounts offering very little by way of interest, many investors are still tempted by property as an investment, despite the current economic climate and the property market being fairly stagnant.
According to recent reports more than one in eight mortgages are now for buy to let or landlord type loans. These types of investments are offering a good return as rental yields are high, compared to low interest rates on mortgages. Also with many struggling to get on the property ladder and not having the finances to put down a deposit, more people than ever are renting.
Middle to high earners are going to be hit yet again as the Chancellor has announced even more tax cuts to pension contributions and so instead of paying into uncertain pension plans, many are looking for alternative investment strategies. Rental properties offer a good way to produce an income as well as offering a good chance of capital growth, given it is a buyers market and those in a position to do so with financing can make good offers on properties.
A number of housing developers and house builders have seen a substantial increase in those looking for investments in new build houses and property developers and house builders are offering special seminars on how to invest wisely and inviting guest speakers and industry experts to answer questions.
Current figures show that at the end of 2012, landlords could be getting as much as an 8% return on their capital investment by putting their money into a buy to let property and taking in tenants. And with rents likely to keep rising, with figures of 18% over the next 5 years being banded about, the rental market is looking very strong and attractive indeed. Many young workers are unable to get on that first rung of the property ladder and so are looking for good quality property to rent in desirable areas.
In Kent, which is a commuter county, rental demand is particularly high and anticipated to remain so. Similarly London properties are renting well as are any good locations with good travel connections to the capital.
By investing in a new build property you get various guarantees on fixtures and fittings as well as the NHBC 10 year guarantee on building works. This means if the boiler blows up or the cooker breaks down within the first 5 years, the developer or house builder will replace with a new one or get the appliance fixed. The money is not coming out the investors pocket. This is fantastic news for a rental property.
For more information on new homes for sale and new homes in Scotland visit our sites.
Company information:
Name: WhatHouse
Address: Global Street, London
Website: http://newhomesinscotland.uk.com/