Wednesday, July 15, 2009

What are the Advantages of Investment Property?

Recent studies suggest that the amount of people jumping on the investment property bandwagon is set to rise over the next six years, due to the 2012 Olympics. As with the many other benefits brought about by London's hosting of 2012 Olympics, this predicted increase in investment property will not just affect London but all major towns and cities in the UK. So what kind of benefits can investment property afford?

Stability in Investment Property

Whether you are a first time buyer set to buy your own home or an influential investor looking into investment property the benefits which the investment in bricks and mortar afford, should not be underestimated. Although taking risks on the stock exchange may yield higher returns, investment property can provide you with a stable, steady income and a relatively secured level of return on investment. When looked at with a long-term view the investment property is unlikely to ever lose you money. You may have to pick the right time to sell a property but as long as you keep looking at this investment with a long-term view you will be hard pushed to go wrong. Put simply, property is historically stable and if you are prepared to wait it out you can make money on it.

Financial Gain

If you do your homework and consider your investment property as a long term investment the financial gains to be won through investment into property are fairly substantial. In short, one of the most significant benefits with regards to investment property is that as long as you have a bit of free capital you are able to borrow money from the mortgage lenders, in order to buy a property which you can then let out and charge tenants money in order to pay back the mortgage lender. In affect you become a middleman who is set to earn a good return on investment as long as you decide to follow a few basic steps.

Return on Investment.

Studies suggest that, on average, a home doubles in value every seven years and whilst this is not guaranteed as long as you have the property correctly evaluated and you buy in the right area you can feel certain that you are making a good, financially sound investment. This means that if you have a lump sum of money which you are interested in investing then Investment Property is certainly a type of investment worth having a look at.



By : Elizabeth Grant
Elizabeth Grant has been in the finance industry for more than 20 years and writes exclusively for http://www.the-mortgage-broker.ltd.uk specialist mortgage websites. To read more of Elizabeth's articles on Buy to Let Mortgages please visit http://www.buy-to-let-centre.co.uk.

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