According to Jonas Crosland, writing for InvestorsChronicle.co.uk in May 2017, investing in property is worthwhile as long as investors follow careful guidelines.
Crosland writes that it is possible to make a swift profit through buying and selling property, but most investors see property investing as a long-term process. Property values could fall in the short term, but within a few years prices will probably have risen enough for reasonable profits to be made by selling property. He says:
“Capital values can slump in a recession, but as long as rental income covers the costs associated with owning a property, it’s more a matter of riding out the storm”
Some investors are put off because they believe that when Britain finally leaves the European Union, it will negatively affect the property market. Even if this happens, Crosland points out that the Brexit process could take 10 years, so it is too early to use leaving the EU as a reason for not investing.
Property prices and rents vary considerably between regions. Crosland advises looking outside of London for property investments. He says:
“Development in the regions outside London has seen a significant increase in demand as areas slowly come out of the decades of stagnation.”
Investing in buy-to-let residential property is challenging, but if landlords get their sums right, then profits can still be made.
Commercial mortgages are available at low interest rates for all types of investment properties, and a broker can find the ideal solution.