The following is a guest post about property investments
Become a landlord and make your money work for you
Buy-to-let is a way that many people have been investing their money since interest rates fell to historic lows and savings have offered little return.
With a strong recovery in the property markets hitting the headlines, it looks like now is as good a time as any to get involved in rental investments before prices go any higher.
Investing in property has always been seen as a great investment and becoming a landlord is now more popular than ever.
The big factor that affects savings is interest rates. When they are as low as they have been for the past few years there is more incentive to make your money grow in other ways.
In the UK, interest rates are set by the Bank of England and there are conflicting signs as to how soon we can expect any increase. In the meantime, low cost mortgages remain a good deal for many would-be landlords and mean that higher yields on rental levies will be possible until circumstances start to change.
Obviously when you buy a property to rent out, not only do you receive a regular income but the property itself also grows in value if you have bought wisely. This is called ‘capital appreciation’ and some forecasts are currently suggesting a growth of 20-30% over the coming years in the value of property in the UK.
Of course international property investment opportunities are also available to everyone wherever they are based, and different countries have excellent prospects across various sectors.
In fact, unless you are lucky enough to stumble into buying shares in the very early days of the next Facebook or Twitter, putting your money into property in the UK or abroad is likely to offer the best returns of any investment currently available.
With interest rates unlikely to see large jumps even when they do start to rise, many first time buy-to-let landlords are currently looking to get involved in the rental sector.
For those who already have a buy-to-let portfolio, now could also be the ideal time to extend it by adding more properties. As rents have remained stable through the economic crisis and the benefits of low mortgage costs have been felt for some time, existing landlords will be well placed to invest further.
For many rental property owners, yields are the best in a generation and capital growth has already begun to revive, so investing money in this sector really does seem like a solid and viable way to keep making your money work harder for you.