Guest post by Brian Jeffries.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
Real estate has been a hot topic for the last year, as people are watching the market heat up. Although jumping in while it’s heavily invested in may seem like a questionable choice, real estate prices have been growing for decades, and they’re not stopping any time soon.
These are the top reasons everyone should invest in property.
1. Property Prices Have Been Skyrocketing for Ten Years
Just a couple of years ago, sellers had to pull out all of the stops to be able to sell a home. This means investing in metal plank siding, offering buyers the chance at in-floor heat insulation: but property costs have risen so much now that not offering these is still lucrative. For example, the average home in London in 2011 price was £221,331, and it’s more than doubled in the last ten years: with the average home in 2021 now costing £497,948.
It’s clear that the prices will only go higher, so getting in before they do is a sure-fire bet on gaining money. It’s okay to still invest in vinyl flooring that looks like wood and a beautiful new set of windows; you can still grow the value of a home, just know it’s gaining more interest by simply existing in London.
2. Over A Fifth of People in the UK Rent or Live-In Shared Housing
Although buying a home is still the goal for many, a fifth of people in the UK currently rent their home. This share is even larger in London, where it rises to 30% of current residents renting from a landlord.
When deciding to rent out, try to look for a property with more than one building on it if possible, or that can be turned into more than one unit. Although renting a four-bedroom home is lucrative, renting two two-bedroom flats can bring in an even more substantial income. If you find a property with enough land, consider investing in ICF block construction and adding another building to it.
3. The Market Is Hot: No Properties Stay Available for Long
Houses used to sit on the market for two to three months, but the market is hot, and people are no longer waiting around to see if other options come up. Instead, many are looking to buy as quickly as possible, meaning that most homes sell in less than a month. If you’re clever and enjoy flipping homes, this could set you up for a lot of money gained quickly. Just ensure that you don’t underprice and stay firm on your investments.
4. There’s More Than One Way To Invest
Renting and flipping homes aren’t the only two ways to invest in a property. Recently there’s been a push towards peer-to-peer lending, which allows you to invest in a property and see a return without ever having to visit the property or get hands-on with it. Although this may be a scary show of trust for some people, for others, it’s been a fantastic way to allow their investment to grow without the work necessary to improve a building.
5. Passive Income Is The Global Goal
Investing in property has the potential of winning you a high return, but it won’t feel that large if you have to spend an entire year updating, renovating, or building a property. When you’re investing in real estate, the main goal should be to gain a passive income however you can. This could mean investing in a business that pays you a portion of the profits as they grow, or putting money into someone else’s property updates that they can pay interest on: if you have to put the work in yourself it’s not passive.
6. It’s Easier to Invest Intelligently Than Ever Before
Thanks to the internet, it’s easier to invest and more straightforward when you want to track your investments. This means you can be more selective and look through all options before settling on a project. Although many still prefer classic investing and want to get to know the person they’re investing in, these projects are as easy to read over as a food delivery order now: no need for emotional attachments to a project, simply financial ones. This can help you make safer financial decisions since you’re investing solely in the project instead of in how well the borrower was able to convince and sell you into their investment.
Investing Isn’t A Momentary Fad
Although it may feel like there’s a lot of pressure on investing in real estate in current years: this is a centuries-old tradition that’s been gaining investors money since its invention. If you’re worried about the best way to invest, or you’re new to investing as a whole: you’re encouraged to do your research. Look at which lending possibilities can get you the best return, while also allowing for you to put in the least amount of personal work and risk possible.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
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