Guest blog – Five Reasons why now is a Good Time to Invest in Property
Hartley Fowler work with external consultants who complement our services, such as Eyeedul Haque of My Property Consultant, who has kindly provided us with the below guest blog.
With the stamp duty holiday coming to an end in late March, a suite of vaccines giving hope to the longer-term economic outlook, and the UK moving forward after four years of Brexit ambiguity; now is a great time to invest in property.
If you are someone who has long considered buying an investment property, now could be the right time to take the plunge. Here are five reasons why we think 2021 could be a good year to add property to your investment portfolio:
We have now turned the corner on Brexit
While there is clearly still work to do in terms of overcoming the negative repercussions of Brexit, the fact that a deal has been done offers some certainty, which can only be good for the UK property market. Early last year, the property market had already started to brush aside Brexit woes before the global pandemic hit, which means we have another year of pent demand to assert itself.
The right property can command good rental demand
One noticeable trend of Covid-19 is that renters are seeking properties with outdoor space, room to work, and are more accepting of a slightly longer commute, meaning you don’t necessarily need to invest in a city centre location for best rental demand. Buying now means you can ensure your investment meets post-Covid demand.
Good longer-term returns are very achievable
Like any type of investment, it’s dangerous to invest in property for short term gain. While prices are on the rise, we’re still reasonably early in the recovery. If you are prepared to invest for the longer term, you might wait a long time before you find a better moment than now.
Interest rates are likely to stay low for a long time
Most reports suggest that low interest rates are here to stay. Here is an example of one such report: www.bloomberg.com/news/articles/2021-01-05/ultra-low-interest-rates-here-to-stay-2021-central-bank-guide. There are also some excellent fixed rate mortgage deals out there, which we can help you source.
If you are a cash buyer, you could still take advantage of the stamp duty holiday
The stamp duty holiday ends on 31st March and you will save up to £15,000 if your purchase completes before then. For overseas investors there is the double incentive of buying before the government increases rates for international buyers by a further 2% on 1st April. Most mortgage providers are struggling to meet demand, so if you’ve not started the process yet, you would need to be a cash buyer to complete on a property before the deadline.
Get in touch
It’s a big decision investing in property, and it’s hard to know where to start. We can help you find a property in an area with excellent rental demand and investment potential. We’re not tied to one estate agent or builder, which means we can be entirely focused on finding the right property for you. If the sale falls through, we don’t charge you any extra. We just start the process again on your behalf. We arrange all the finance for you, dealing directly with a mortgage broker to find you the best deal. You only pay us a deposit until we have successfully bought you a buy-to-let. Once the sale is complete, we can manage the property on your behalf.
You might be interested in downloading My Property Consultant’s January 2021 Property Index Tracker.
You can also listen to a recent podcast with Eyeedul Haque and Nicole Bremner, a property guru, covering the following topics:
- Future of house prices
- Trends in housing
- Issues within the industry
If you would like to invest in property, and would like to discuss some of these findings in more detail, please email me at eh@myproperty-consultant.london or call us on +44 (0)20 3819 6070.