By Sebastian Schmid
The idea of investing in the property can be scary, especially for those who are new to it. With the 2020 pandemic reminding us of how easy it is to lose jobs and income stream; we were even stingier with our purse strings.
However, 2020 has shown us how COVID – 19 caught businesses and consumers completely off guard, sending the UK property market into a boom to build long-term returns and demand.
As the UK is entering the period of post-covid-19 recovery, it impressive to see how investing in British property could be the best decision you make this year.
Here are few factors that will help you understand why 2021 is the right time to invest in the UK property market.
- Low-interest rates
A few weeks into 2021, the vaccinations (AstraZeneca and Pfizer) are being circulated. It is expected that the market will bounce back into recovery. However, to bounce back to normality, the incredible shot down of 0.1% presented an opportunity for investors to spend more and access more affordable mortgages.
It means that many lenders are offering incredibly competitive rates which are likely to benefit investors and beginners in many ways, like:
- Remortgage existing properties
- Release equity
- Leverage new investment
- Better rate of return on property investments.
- UK property market return on resilience
As of 2020, we have learned that the UK property market has been flexible in the face of a pandemic – including National lockdown and extensive restriction.
Therefore, the property market has not only survived the pressure, but it has also thrived in its presence. Many experts have predicted that the average property price will continue to boom as 90% of mortgages become available to first-time buyers and for the people who are in search of their ‘lockdown’ homes.
- Broad market and diverse
To be a successful investor, you need diversity in your portfolio. Most property experts suggest that having a variety of housing lowers the investment risks as you are not tied to one market.
However, diversity can come from different property types or similar properties across other regions.
Fact: A single property investor cannot match the diverse portfolio performance because they cannot gain returns elsewhere.
- Property remains a solid option
Lastly, UK property market continues to be a stable alternative for investor despite recent challenges as covid-19 and the shock of the Brexit vote.
When the lockdown was first announced, the stock market crashed between 25% and 30% in March, while the property market proved to be arguably one of the most stable, high-yielding assets. Thus, it remains a number one option for those who want to continue to grow.
Final words
Whether you are investors, experience, and new, you can look to 2021 without fear of entering the UK market once again because the property will remain an indispensable industry.