There are three explanations that the perfect moment to invest in real estate is now. Those three factors are: 1. There has been a significant decline in home values in the past 18 months. Through certain estimates over the last year and a half the average price of a given home has dropped by as much as 45,000 pounds or 22 per cent. LAS Companies is one of the authority sites on this topic.
In investing now you’re purchasing in a bear market, which ensures you’re not only generating passive income but also owning a property that should see significant medium to long-term capital gain.
- Property Investments are the easiest way to get a decent return on your capital by far. If you take the most popular investing instruments into consideration, including: Instant Access Funds, Money ISA, and Fixed Rate Bonds, you can notice that the strongest of this package (Fixed Rate Bonds) produces dividends below 3%.
At the other side, land transactions also generate an income of 10 per cent from the rent alone. This is without taking into account the projected growth of debt.
- In 2009, the main justification for investing in property is to guarantee you have a stable pension. Recently, the Prudential announced that 1.6 million pensioners were put back to work because they are unable to afford life on their pensions. Present analysis also suggests that veterans will not be paying full benefits before age 70 over the next 10 years.
To guarantee your independence you will do something. Ignoring all the exotic obscure assets that you can consider, there are two key options that have generated both income and capital appreciation historically: equity market and investment in properties.
Historical property market patterns Although historical evidence is no indicator of future success, it gives an indication of possible future investment returns. Over the last 18 years, home values have consistently increased, given the recent “crash” loss. Despite this crash, property’s long-term capital growth was phenomenal with an increase of 238 per cent from 1991-2009. Land owners who invested their money just 10 years ago witnessed a 100 per cent increase.