Digital technology has paved the way for the average person to access many new avenues in terms of investing their hard earned money. It is easier to invest in shares and there are many ways to set up an e-business for example, however, it may well be worth asking yourself whether investing in good old bricks and mortar is still the most solid of choices.
The average price of a property in the UK has now reached a staggering £288,000 and of course this means that more and more wannabe homeowners are finding it difficult, if not impossible to, to save enough money for a deposit. In fact, many under 35’s are looking at renting permanently in the face of the perpetual increase in house prices. So is there an upside?
Rental properties at a premium and those who are renting them are spending around 22% of their total income on rent. The Upside? Well, if you’re looking for an investment that will generate an income, the potential returns for landlords are a prospect that is well worth considering.
Entering into any investment or business venture, is something to be approached with caution, but sensible planning could mean that you are able to turn a monthly profit from a rental investment and have equity that you can rely on if you should decide to call it a day.
Calculating weather or not it would make financial sense for you to become a landlord is the bedrock of any such venture and is not as difficult as you may think. It’s a simple equation, take the monthly rental figure, deduct the monthly costs and what’s left over is the monthly net profit. Make sure you are thorough when it comes to listing your costs and don’t forget factors such as tax.
Another cost you mustn’t overlook is insurance. Having quality insurance, will give you with peace of mind and protection, comprehensive cover is a must. homelet.co.uk specialise in providing landlords with insurance cover that is tailored to their specific needs, they have 20 years experience and will offer you support throughout the whole process of setting up your business investment.
As interest rates have been so low for so long, becoming a landlord is a long-term investment that has become a popular choice for people looking for an alternative way to make their saving work for them. There is no doubt that it’s a complex procedure, but proceeding sensibly and getting the right advice means that you could soon be sitting on an investment that is safe and will afford you a profitable future.