Is Property a Good Investment in the UK 2022?
The question is property a good investment UK is one that is asked and answered many times. Often the answer to its suitability as an investment is directly linked to your circumstances and your requirements for investment now and in the future. However we believe investing in property is always a worthwhile and profitable investment.
Is Property a Good Investment UK 2022?
The UK is starting to see an emergence of a period of economic instability driven largely by world politics. The UK is implementing alternative energy strategies and whilst doing so is seeing spikes in energy prices and uncertainty over supplies. We have just seen an increase in the bank of England's base rate of interest. The modest increase in rates of one-quarter of a present may not sound like a lot but it is an upward change. Historically the UK’s base rate has remained low since 2008. Before this period, the base rate of interest fluctuated in much higher numbers. In the early 80’s interest base rates as high as 17% were seen and as recently as 2007 the base rate was 6%. So it can be seen that our interest rates, even with the modest increase remain very low. This gives the continuing opportunity for property investments to continue to outperform other traditionally stable investments. Is property a good investment 2022 needs us to look at further factors that have historically affected property prices in previous years.
UK Economic Growth And General Economic Prospects
Increasing house prices in the UK property market have long been associated with economic growth. The higher house prices and greater consumer confidence in the economy continue to lead to greater spending in real terms. The UK is undoubtedly seeing challenging times along with many if not all countries in the world. This can be seen as a good thing for productivity and economic growth. With many national infrastructure projects underway and planned, the UK is forging forward with its plans to reduce reliance on fossil fuels. Some of the goals require substantial investment and manpower to achieve; these national projects are expected to add significantly to the UK's economic growth for many years to come. This is great news for the UK and for its homeowners and should see a steady to moderate increase in house prices. With the future looking busy for the UK, there's no reason to think this trend will slow down.
Alternative Investment Suitability and Stability
When considering if UK property is a good investment, you have to take into account the alternative investments available.
With low-interest rates that have been prevalent in recent years traditional banks and building societies have had little to offer in rewards for savings. This situation looks set to continue with only modest gains in interest rates being announced.
Alternative investments have abounded in recent years, the most talked-about being Cryptocurrency. Though Cryptocurrency does have its rightful place in investments, the type of investment experience offered is very different. The entire crypto industry facing crises or scandals often and with alarming regularity. Rightfully many investors will quickly remove it from a comparison with UK property. Excluding the recent price crashes experienced by all the various coins and markets, which may or may not bounce back quickly, Cryptocurrencies are an extremely risky investment. They cannot be viewed as a relatively safe investment in which you can trust significant amounts of money that you do not wish to lose. Property in the UK is well protected under UK law and ownership of a property gives you extensive rights over maintaining and even improving its value. The same cannot be said for Cryptocurrencies or other digital assets. This leaves a UK property buy-let-invest investment a good choice for those wishing to invest their assets.
To Buy Or Not To Buy
If you do not currently live in your own property in the UK, now is a great time to buy. We are experiencing increases in the costs of living currently. This cost of living increase has yet to be felt in the housing market, prices remain positively stable. It is a great time to buy. Rent increases will shortly be the only resort left to landlords who are also facing increased costs. This represents a window of opportunity for the first-time buyer to invest in a property. Property investment has a great long term track record for giving people a return on their investment generation after generation.
Time To Expand Your Property Portfolio
If you're a landlord, or someone considering increasing your investment portfolio, now is a great time to buy. With the same inflationary pressures being felt by the whole country, it is clear there will be further demand in the future for rental properties of all types. Traditional investment strongholds like city flats continue to be very worthwhile investments. Out-of-town developments are seeing a renewed interest due to staff and workers who now predominantly work from home. They have released additional income by the reduction in commuting costs faced. This has given many people the desire to relocate and often look for long-term rental properties. Properties that offer what they are looking for but do not interrupt their city homes.
Is Property a Good Investment 2022 for a Solo Investor?
The possibility exists for both those that don’t own property, and those that do, to find investment partners and take advantage of the investment possibilities UK property offers at a reduced investment. This can be a great way to make a start on your property portfolio with a lower buy-in price and the obvious advantages of being able to choose more accurately the shared risks and location of a property to suit all parties.
When considering is property a good investment for 2022 there are plenty of things to consider – take your time to research all of your options so you can make the best financial decision for you. If you have decided property is the investment for you, we can help. With a buy to let investment we have been assisting individuals and businesses for over 15 years. We are specialists in the residential buy-to-let market in the North East of England. Helping individuals many of whom are successful business people who lead busy lives. We arrange expert financial & legal advice, buildings surveys, portfolio building, ethical investing with long term social housing leases, high yield investment bonds, new build joint venture developments, in house refurbishments and our own property management company.
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