With house prices set to continue to rise into the middle of the decade, property investment seems to be a solid strategy going forward, with good prospects for capital growth as well. Of course, this covers a multitude of sub strategies, as is your particular preference as an investor. Rental yields have dropped in many areas in recent years, but we believe these will be set to recover somewhat, as landlords continue to professionalise and shift more to regarding themselves as running a business – and focus on margins – rather than just a collection of investments.
This will result in the true cost of ownership being reflected in the cost of the product – the rented accommodation, whereas in recent years, renters have been shielded from these costs somewhat. Rents though, will ultimately be linked to wages and affordability, as are house prices themselves.
With all that said, here at The Property Lifeboat, we will be looking to acquire more property over the coming year and beyond. Ours is largely a buy and hold strategy and we will also be looking to find development opportunities where we can subdivide, add value and maximise rental yield and return on capital invested. What will your strategy be?
If you are new to property investment, a more seasoned investor or a landlord looking to sell some or all of your portfolio, then get in touch for a chat.
