Being the owner of one’s own buy-to-let property might be rewarding, but it can also turn out to be a time-consuming process. Investing in real estate has been regarded as one of the best ways to invest financially for many years. While the economic uncertainty that was caused by Brexit has definitely affected the property market, if you are considering investing in property, this is the best time to do so as said by Bicester estate agents.
But what kind of proper should you invest in? There are hundreds of differen 6fv t types of housing markets that are available in the UK. Hence it is important to understand the particular demands of the area you are considering investing in. With a lot of variations across regions, the property market in the UK is quite dynamic. For example, in many parts of the UK, such as London and Bicester, flats take up more than half of the total property sales.
In recent years, there has been a favourable shift towards flats and apartments mostly because the younger generation prefers to live in such accommodation. Tenants who look for flats are all for the flexibility that renting has to offer, mostly in large cities and towns and the jobs that are created in these cities.
In the past few years, the UK economy has undergone some tough times, and good quality flats are costing much lesser than what anyone would pay for a house. The maintenance required for the upkeep of this kind of property is also much lesser in comparison to that of a house. Hence, the chances of higher returns increase. When it comes to property investment, gaining good returns from your rental property is very important.
If you are still not convinced about the reasons why you should invest in a flat in the UK, we have curated five reasons why flats and to-let properties are the first preferred options for property investors in the UK.
1. Rental income
If you are someone who is looking for ways to earn some passive income, then property investment in the form of flats in the UK is the best option for you. Every month you will receive a certain fixed amount in the form of rent from your rent. If you choose your investments wisely, you will have a decent amount left with you even after paying the mortgage and taxes. Hence, rental income is a good way of earning passive income from flats is a sign of good investment.
2. High demand for accommodations
Flats in the current era have a huge demand as more and more individuals are choosing to live in rental properties instead of buying their own homes. One of the biggest reasons for this choice is because the current rent/buying population is made of millennials who are constantly moving for various reasons, most commonly work. In such situations, the commitment that comes with buying a house and the burden of a bigger mortgage is much bigger. On the other hand, Flats are more affordable properties and easier to get a mortgage from lenders.
3. Capital gains
Whenever there is a fluctuation in price, a new investor would avoid investing in properties. A seasoned investor, on the other hand, will consider long-term goals despite the fluctuations in the market. He or she will know that a good and suitable property will increase in its value after a couple of years. A lot of property analysis is required to get the maximum benefits in the longer run.
4. Costs that could be offset against taxes
It is mandatory to pay a tax bill by filling out a Self-Assessment Tax Return for the HMRC. However, it is possible to offset some costs against tax. The costs involved are the fees you need to pay to the letting agent, the interest you pay on your mortgage payments, the cost of advertising your property, repairs and the council tax. There are also some tax reliefs offered by the UK government on maintenance, repairs and renovations.
5. Availability of discounted prices
Did you know that it is not necessary to pay the complete market value when you are purchasing a property? There are some property buyer strategies that you can employ when investing in an apartment and save up to 30% by finding Below Market Value properties.
Investing in a flat in the UK is a good choice for property investments because of many reasons. With smart investment strategies, one can reap the benefits of the current housing market and make profits in the long run.