Investing in property is an excellent option, provided you do your research and understand the market. Offering a consistent cash flow and healthy levels of appreciation, investment properties make sound financial sense and can lead to significant earnings for years to come. You also don’t have to be an expert to take advantage of this exciting and rewarding venture. Having enough knowledge to help you decide on the location and style of the property, and on how you will finance the investment will ensure that you benefit from your investment without the need for any expertise regarding the housing market. Allow us to explain why, in our opinion, this type of investment is always worth considering.
The ‘buy-to-let’ approach
‘Buy-to-let’ purchases are property purchases that solely serve as investments. For those able to put down an initial payment, these investments come with a host of benefits.
Before we address the main question here, ‘are investment properties worth it?’, we will explain exactly why buy-to-let, or investment, properties remain such an attractive prospect to so many.
For a large number of people, investing in property represents a highly effective way of generating passive income. In other words, once that purchase is made, money is generated without the need for constant, active work. There is also the added bonus of a significant cash payout further down the line, making the financial benefits of an investment property too tempting to ignore.
The investment is generally safe, too. UK property prices consistently rise – save for the occasional blip along the way – over time, meaning that the asset’s value increases by a healthy amount for anyone willing to be patient.
The perks of passive income
Investing in property offers financial stability and a consistency of cash flow. Cash flow simply refers to profit – whatever you end up with every month after collecting all income and paying your expenses represents cash flow.
It all comes back to passive income. Provided you’re willing to give it time and can be patient with your investments, investing in property is a no-brainer for anyone in the position to do so. Passive income, and the luxury of having more time to spend on the things you want to do, can ensure the perfect work-life balance and a relaxed, fulfilling life.
There are only so many hours in the day, and we’d wager most people would rather spend them on the beach than meeting deadlines. The desire to retire earlier, and to enjoy yourself more along the way, is something most people can relate to.
One quick glance at gov.uk tells you plenty about the trajectory of house prices in the UK. An 11% increase in 2021 may be slightly higher than normal, but since 1975 the trend has been clear; even taking inflation into account, there has been a staggering increase on a very consistent basis.
The only blip during that time came in 2008, as the credit crunch ensured that inflation caught up with just about everyone. Since then, we have seen business as usual in the form of consistent increases once again.
Few investments in life are historically as sound as housing and, unless you’re keen to buy yourself some gold to hide in the garden, an investment property represents one of the most sensible options out there.
Investment properties from Stephens + Stephens
From our perspective, there’s never been a better time to invest in a property in the South West. With the UK ‘staycation’ still extremely popular in the wake of COVID-19, people are more eager than they have been for years to holiday at home.
Cornwall, often seen as somewhat ‘separate’ to the rest of England, offers people the perfect escape. It’s far enough away that there’s the intangible sense of intrigue, but not so far that plane cancellations and LFTs can put paid to months of planning.
To read more about the way people are continuously warming to coastal, home-based holidays, head over to our investment property page. There, we discuss the holiday business and examine recent trends to establish just how long this pattern may hang around for.
Equally, if you’d like to hear more about how you could sample our Cornish + life + style for yourself, get in touch with us to enquire about our available properties.