Investment Planning 

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With the property market experiencing double digit returns in the last 15 years or so in a market that has boomed at an unprecedented rate, it is no wonder that property investment has become increasingly popular.*

Add to that the fears of stock market crashes and negative press about the pensions industry, disillusioned investors have turned to investment in 'buy to let' properties as a future pension fund. Many investors consider bricks and mortar as a 'safer' way to invest compared to stocks and shares.

Unlike stocks and shares, your property is a tangible asset. You can have a direct impact on it by improving its features like adding a kitchen or a bathroom or by adding an extension. This can significantly enhance its value, which in turn can potentially result in higher profits (depending on the market environment of the time).

It is important to note that short-term fluctuations are a natural part of the property business cycle, but historically, its value tends to increase over the long term.

Letting agents can manage your property and any tenants so you could potentially reap the rewards of your investment property with minimal effort. As well as offering the potential for capital gain, investment properties can also produce attractive rental income.

There are considerable tax advantages for landlords. It is recommended that you look at your personal tax situation and seek the advice of an accountant or a tax specialist who will be able to advise you on the possible ways to reduce your tax liability.

If you are thinking about a 'buy to let' investment property it is a good idea to do plenty of research. A good investor will not only consider the property itself, its location and size etc, but will also bear in mind whether or not it is the right time to invest.

As already mentioned, property value tends to rise over the long term, but inevitably there will be price fluctuations along the way. It is not necessarily wrong to assume that if the housing market is experiencing a slump, it will rise again given enough time.

This would therefore be a good time to invest in property since you are likely to see your property value rise in the longer term. Investment in property can reward you with great financial gains. A bit of research and planning before taking the plunge into a commitment of this nature will ensure that your investment in property is good value in the long run.

* Please note that this may not necessarily continue into the future.

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