Why Should Small Families Opt for Investing in Apartments?
According to the leading letting agents in Aylesbury, there are many benefits to investing in flats and apartments for a small family. Investment in the real estate sector in the UK is a rewarding endeavour. The real estate industry in itself is a dynamic one and the market is volatile just like any other market.
However, investors have been choosing to invest in real estate for the longest time. Let’s take a look at the benefits of investing in apartments that can be rented out to a small family and/or investing in real estate in general:
Higher rental returns:
For investors who are looking for investment in the real estate sector, there is no way to overlook the huge importance of rental returns. When you are investing in small apartments for families, the rental income increases as you will be able to invest in multiple properties.
The return is calculated in the form of annual rent that is divided by the value of the property. Then you will be able to find what percentage of the property value in which you have invested is produced in the form of annual income. In the U.K., this percentage is generally between 8 to 10%.
However, the rental returns vary on the location- the country area where one is choosing to invest in can dictate the percentage of returns. But no matter where you invest, high-yield rentals in the form of small apartments are a good option for long-term investment option for those who are looking for steady capital growth through investment.
Moreover, the property market in the UK is becoming more quality-oriented and not quantity. So the demand for high-quality housing is increasing every single day.
Potential for capital growth and the increase in property prices:
When you think of lasting investment, you think of real estate. So the value of the property you will be investing in is going to increase with time. The value of money is also going to increase as time passes. In comparison to other financial products, the real estate sector does not face much volatility and still offers great capital growth and a purchase potential that is a low stress.
The recovery from the impact of the pandemic in the real estate sector of the UK is commendable and according to the market predictions, there is going to be an expected 20% growth in the five upcoming years.
Properties are in high demand:
When you are investing in residential property, whether it is a small flat for a family or a bigger and spacious apartment, there is always a lack of supply in residential properties. The number of people looking for rented accommodations is higher than the number of residences available in the UK.
With the rapid change in lifestyle of people, the choice of long-term rentals in various central locations is increasing. Some of the basic reasons are they are cheaper, and in the core and smaller areas of the UK, they are gaining more popularity and hence leading to rising in the rental demand.
There has been significant growth in the UK property market over time:
Since the past decade, there has been a significant increase of almost 6.5% in estate prices in different prime locations in London, while Britain saw an overall increase of 5.4%. This is one of the major reasons why investors are choosing to invest in various kinds of properties ranging from small apartments for families to larger residential housing complexes.
Appreciation of the current value of property:
It is quite difficult to predict how much a property will appreciate with time. But if you are looking for a time when the property prices are reaching a record high, and the real estate market looks promising, now would be the ideal time to invest.
The rate of interest has hit a historic low:
Most major banks are providing interest below 1% on current accounts and mortgage rates are below 4%. So grow your wealth now and be a smart investor.
Investing in the real estate sector can be tricky and challenging. But we hope with these benefits discussed on the investment of small flats for families helped you plan your next investment move.