Buy-Investment-Properties

The Property Buy-to-Let marketplace

The buy to let market has been very rewarding to many landlords over the last few years.  The properties acquired have increased in value and typically in the UK property has doubled every seven years.  As a matter of fact, 58,000 people per year become millionaires through property investment and by 2010, there will be around 760,000 millionaires through rises in property prices! By 2020 the number of millionaires will reach 1.9m! ( Source: The Centre for Economics and Business Research - CEBR)

Housing shortage in the UK
The population in the UK has increased since 1901 by an average annual rate of 0.4% andmore recently due to international migration into the UK from abroad has significantly increased. According to the Office for National Statistics (ONS), the population of the UK is set to increase by 4.4 million to 65 million by 2016. Researchers estimate there will be 70 million people living within its borders by 2028. ( Source: Office for National Statistics -ONS)

Supply and demand
The demand for rental has increased rapidly due to the increase in population; however the current housing situation in the UK does not present the population with enough supply. According to the Office of National Statistics there will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a 1 million housing shortfall by 2020 if current trends continue.
This means that the demand for property is increasing therefore driving up the price of property in the long term. Furthermore the rental market is more buoyant - the regular Buy-To-Let index survey by Paragon Mortgages shows that landlords enjoyed an average yield from their investment of 16.5% in June - up from 11.9% at the start 2006.

Property investment benefits

• Low interest rates and steady house inflation is proving to provide rewarding returns for landlords
• Has outperformed other investment vehicles and provided a secure return on investment (property prices in the UK have risen by a staggering 138% since 1995).
• Lesser risk, higher long term growth and more predictable returns than volatile stocks and shares
• Easy to borrow money with over 50 buy to let lenders offering 100s of products in comparison to borrowing money for the stock market
• A property is a tangible asset and becomes yours to see and feel unlike stocks and shares which remain the property of the company you are investing your money in.
• A buy-to-let investment property can earn a rental income on top of your eventual capital growth. Stocks and shares don't work as hard for you