Is Property Actually A Good Investment?

Everybody Loves Buying Property But Is Property Actually A Good Investment?

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Everyone needs housing and this is surely one of the reasons why the real estate market has proved itself as an interesting investment tool. Unless there are exceptional circumstances, a well-located and well-maintained property generally increases in value year after year. although this is not to say that these long term increases have not been interspersed with both property boom and bust. Historically, the gain exceeded inflation. And because the real estate market is less volatile than the stock market, people who can not tolerate the risk can find it.
It is likely that the purchase of a first home or flat will mark your debut as a real estate investor. By becoming an owner, you will possibly pay more for your accommodation than when you were a tenant. In return, you acquire a significant asset that can, for example, be used as an alternative to a pension fund.
Then, manage your mortgage as well as possible: in addition to increasing your down payment and obtaining an advantageous interest rate, make payments every week or every two weeks and make sure to reduce the amortization period. You will save tens of thousands of pounds in interest charges!
Investing in real estate is also taking advantage of the fact that repaying your mortgage eventually creates equity that can leverage you to buy other property. Indeed, if your credit report allows it, you can refinance your first mortgage up to 80% and use this capital to acquire a rental plex, a commercial space or this cottage you have dreamed of for a long time …

Image Courtesy Of SpanishSun

If you go in this direction, do not do it blindly! Learn about the real estate market and look for deals. According to specialists, a good deal is a good quality property that you will pay 10% less than its real value and which can be resold or rented as is quickly, with profit in passing.
To maximize your investment, you are advised to start with small real estate located in a safe neighborhood near services, which will make it easier to rent or resell it later
In the case of  buy to let rental property, make sure that rents cover your expenses and mortgage expenses, taking into account that these mortgage interest charges are then tax deductible.
In real estate, the misfortune of some is often the happiness of others. Good shots often come from the fact that homeowners have to sell quickly, for example, because of divorce, estate, bankruptcy or family bereavement. Moreover, the takeovers by the banks make it possible sometimes to get hold of a property at a good price. However, to take advantage of these opportunities, you must remain well informed and be prepared to make large sums in a few days.
One last important point: forget speculation! For example, do not buy a property in the hope that the sector in which it is located will eventually grow, or in light of certain forecasts of market developments … No one has a crystal ball. Bet on concrete, on quality and on maintenance. A building in good condition will always be worth its weight in gold.


How To Buy Property In London (And If You Should)

The property market in London is Booming – Here is how to buy in London  (and if doing so is a good idea)


Buying a property in London


Owning property in London has been lucrative to say the very least over the last couple of decades and if you speak to many people that situation is only going to increase for the next few years. In fact in some areas of London, such as Hackney, they have seen house price increases of almost 1000% over the last 20 years 


Is there a property bubble?


People have been talking about a property crash for quite some time and I personally know of quite a few people who lost out on a lot of money betting on this happening and this was over a decade ago! No doubt the debate will rumble on, below is an interesting video about both sides of this debate




What you will need to buy a property in London


An Estate Agent


Normally, buying a property in London is going to require you to use an estate agent. There are other ways to buy property such as buying a property at auction although normally property sold at auction can have problems such as structural problems or simply be in need of a lot of renovation so you may be better off using an estate agent to find a property, especially if you need to obtain a mortgage on the property.

For a bit of help with dealing with Estate Agents check out these 8 tips for how to deal with Estate Agents


A Mortgage


Assuming that you don’t have a huge amount of cash burning a hole in your pocket then you are going to need a mortgage. There are a huge number of different deals out there so you need good advice on which one to take out. It might be an idea to engage the services of an independent mortgage broker – don’t worry, it does not have to cost you an arm and a leg as lots of brokers will give you advice without charging you a fee.

Alternatively you could try to organise the deal yourself through either your own bank or with some other lender. There are some benefits of doing this as some lenders offer rates only directly through them and many offer great rates which cannot be accessed by brokers. These include HSBC and Co-Op Bank.


A Solicitor


The legal process involved in buying a property is known as conveyancing. This is what allows the required documents (mostly nowadays electronic) to be created confirming that you now own the property.


There are a number of very important legal processes which need to occur in order for your property to be purchased and they need to be done correctly so that you don’t end up with a house which is going to be a money pit rather than a fantastic investment.


Nowadays, most of the work can be done online and even the cheapest conveyancing solicitors should be able to provide you with the legal services that you require for your new purchase.


A Removals Service


So you have your home – now it is time for you to move home! This can certainly be a very stressful time and anything you can do to reduce this stress has to be a good thing.


You will need to choose a good removals service and also pack up your belongings correctly. Below is a useful video on how to relocate without all of the stress and heartache.