Much has been written about the ‘unsustainable’ increases in the UK housing market and now abroad.
The reality is that as an investment, the property has performed consistently for over 50 years.
Here’s why we think property investment is a great potential career choice:
Just look at the facts
- On average UK property prices have increased by 100%+ every decade in the last 100 years. Chronic housing undersupply means that there is still room for significant growth.
- Government figures show that by 2010 up to 40% of UK households will be occupied by single people.
- 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.
- The Barker report concluded that strict UK planning constraints, increasing numbers of smaller households due to social change and chronic undersupply of new houses will remain for the foreseeable future.
- With rising house prices ruling out homeownership for many people, and substantially more people than properties to house them, there has never been a better time to invest in rental property.
Making your money work harder
Property is such an attractive investment because you leverage other people’s money, usually in the form of a mortgage, to maximise your return.
In other words, you don’t have to lay out all of the capital but can still enjoy the profit. You make the money you have to work harder for you. We call it gearing.
Lower your risk, not your reward
Over the past 50 years, the property has outperformed many other forms of investment, exposing investors to significantly reduced risk but delivering similar rewards. Buying opportunities off-plan further reduces your risk as you can enjoy a negotiated discount and you require less of a deposit.
You can also take advantage of 1st Property Investment’s gearing model. ‘Gearing’ means using other people’s money, usually in the form of a mortgage, as leverage to maximise your return.
In other words, you don’t have to put in all the capital but can enjoy the same return. The graph below shows how our gearing model works compared to a conventional way of purchasing a property for investment.
Is property development a good career?
Property development requires a lot of skill in order to be a successful career path, although it is a path that is open to anyone.
While it can be difficult to start off with, the benefits definitely outweigh the negative factors such as profit and overall job satisfaction.
Is property development profitable?
The profits made in this industry can be huge. Whether you want to develop one residential property or multiple commercial units, the profits will all depend on how much you know and in some cases who you know …
How do I finance property development?
If you do not have your own money to fund your property development there are development finance lenders like this one that offers loans to developers and even offers first-time property developer finance.
Development finance is a loan of the certain amount of money you need to complete your development which you then pay back to the lender.
How much does the average property developer make?
One of the main goals in property development is to make a profit on the sale of the property after completion.
With this in mind, the amount that a property developer will make, taking away obvious expenses and taxes, of course, is all down to how clever they are about the features of the development to start with. Some of these factors are:
- Property Market at the time
- Size of property
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