Why NOW is always the right time to invest in property

Why NOW is always the right time to invest in property

How to take the first step and join successful property investors

When they invest in property for the first time, most beginner property investors are reluctant to do so. The most common reason for prevaricating is fear. The fear that now isn’t the right time to invest in property. It is an emotional response to taking a step into the unknown, and one that I discussed in a recent property rant.

The first steps in life are always the hardest and most important

Think about this: if you’d never taken the first step before, you wouldn’t have started your first job; learned to drive, or bought your partner that first drink. The list is endless. If you hadn’t taken those first steps, the chances are you’d now be a recluse and living the life of a monk.

It’s not the first step that’s the real problem; it’s the fear. Uneducated and inexperienced property investors have a fear of investing badly.

Here, you’ll discover why now is always the right time to invest in UK property, and how you can remove the fear of making a poor property investment.

Six reasons why you should invest in UK property now

1)     Long term, property prices rise

In the UK, the average house price has increased by around 7.7% per year since the early 1950s. In 1952, the UK average house price was £1,891. At the end of 2016, this had increased to £205,937. Of course, prices haven’t risen in a straight line. There have been periods when the average house price has fallen. Markedly, these down periods have been:

  • Between 1989 and 1992
  • Between 2008 and 2009

Property Investors in the UK have benefited from incredible capital growth over the long-term (as well as rental income). And market downturns have proved to be short-lived and exceptional investment opportunities.

Average UK House Prices.jpg

2)     Rental income pays the mortgage

When you invest in UK property, you’ll probably do so with the benefits of leveraging. In other words, you’ll put some money down as a deposit, and borrow the rest on a buy-to-let mortgage. If you work out your cash flow and buy in the best places to invest in property UK, the rental income from your tenant will pay your mortgage. On a positive cash flow property investment, it’s possible to be left with all the capital growth and none of the financing costs.

3)     Rents rise

Again, over the long term, rents don’t go down. Particularly in a market like the UK, where demand for rental properties is the highest it has ever been and is expected to grow. There are currently around 5.7 million households in private rented accommodation. That is expected to rise to 7.2 million by 2025.

After you’ve invested in a property, as your rental income rises, so, too, will your positive cash flow. You’ll have more money to spend, invest, or save for a rainy day. We have clients who invested in buy-to-let less than ten years ago and now enjoy a family holiday to Disneyworld in Florida every year – courtesy of their excess rental income.

4)     You can make your investment hassle free

You’re a property investor. There’s no need to be a hands-on landlord. You don’t have to field early morning calls to discuss a dripping tap. You don’t have to chase tenants for rent. Employ the services of a professional property investment management company, and get on with your life while your investment property does what it should: increase in value and provide and growing income stream.

5)     Ten years from now, you’ll regret not investing in property today

I’ll be honest with you: if you invest in property today, you won’t be wealthy tomorrow. Property investment is an extended play. Making real money takes time. But if you don’t invest now, in ten years you’ll probably look back and say, “What stopped me? Why didn’t I commit?”

There hasn’t been a ten-year period in the last 60+ years where the average UK house price hasn’t increased.

Of course, I’m not saying that this is right of every property in the UK. And that brings me to the sixth reason to invest now.

6)     Education and knowledge is free

To benefit from the dynamics of the UK property market, you need to be able to identify the best properties in the best places to invest in property UK. You’ll have to access the best financing, keep on top of your cash flow, and pay attention to the changing regulations and taxes in the UK.

To achieve all of this (and more), the onus is on you to learn about property investment. For decades, beginner investors have taken the plunge and become very wealthy. They’ve done it without the huge advantage that you have at your fingertips. Today, all the education and knowledge you need to make great property investment decisions is free and immediately available.

Take your time to search through all the blogs, articles, videos and other content in the Gladfish Academy. Download the free books and guides, and sign up for our email. We’re here to help you change your life through property investment. With the right education and knowledge, you’ll find the fear of making a bad property investment is replaced with the confidence of making a good one.

Contact one of our team today on +44 (0)207 923 6100, and we’ll be pleased to discuss which property investment education materials will be best for you.

Live with Passion

Brett Alegre-Wood

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

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