Rental property investment is a great opportunity to diversify your portfolio at the same time creating a passive income stream. Reports indicate that the number of rental households in the UK has increased by over nine million in the last decade, making it the largest ever increase over a decade since 1965. Since the figures are expected to retain, or shoot even higher following the high demand for rental housing in UK. 2017 may a good year to think about it whether real estate fits into your property investment strategy. Read on…
Rental property rates will continue their upward climb; it is estimated that, on average, rates for rental properties are bound to increase by up to 1.7% by August 2017.
Most of the UK cities are already witnessing a steady influx of new residents who are always in the hunt for somewhere to settle down.
Eventually, higher property rents will still produce stronger yields in certain cities.Rising prices in rental property may be a turn off for majority of renters; however, the opposite is also quite true for investors who may wish to buy rental properties in some cities in the UK. Recently, rent range identified the high end cities where rental rates saw the biggest jump in the duration leading to the third quarter of 2015 to the third quarter of 2016.
When rental prices increase by 16% every year, many investors may rush to think it as a major payday. On the contrary, it is also important to consider gross yield, after operating costs have been deducted.
So, in a nutshell, sometimes figures may be misleading- but when it comes to choosing a rental property to invest in, the most important factor to consider is location.
Part of the resurgence of some of the leading cities in the country can be attributed to millennial transplants who come in pursuit of job opportunities and affordable housing.
The mathematical function here is that as demand for rental homes shoots higher in these cities, it’s only obvious that rental prices will continue to climb correspondingly. But when operating costs remain low, the eventual result for property investors may lead to a larger payoff.
The Bottom Line is; real estate investment is never a walk in the park. Locating a suitable property and finding a perfect way to finance it could be a life saver. Another factor to consider is the pressure to find reliable tenants to keep the property occupied, so that your rental income remains consistent. In the end, there are also other day-to-day demands required of you as a landlord to keeping up with maintenance and repairs. Property cash buyers’ website is a wealth of resources where you can find handy guidelines to help you out in the process. Click on the link alongside to visit their website: https://www.propertycashbuyers.com/
Always be sure to calculate the risks and research the market keenly, so that you get to understand how much you stand to gain (or lose) from property investment this year.