Discounted
Property
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discounted property deals. |
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| Freedom
Investment Property Ltd |
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| 4
Royal Mint Court, London, EC3N 4HJ |
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| T:
0207 073 0460 |
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| F:
0207 073 0461 |
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| E:
info@freedominvestmentproperty.com |
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Why
UK Property?: There are many reasons
to invest in property but three of the best
are:
1. Track Record - The facts
below outline just how good an investment property
has been in the UK over the last 50 years.
2. Financial Gearing - Property
enables you to use other people's money to maximize
your profits with less outlay.
3. Taxation benefits - Profit made from equity release is free of capital gains tax. |
The
Facts: People will always speculate
but the facts speak for themselves.
• Since 1948 property in the UK has risen
on average 11.3% year on year.
• Since 1962 the office of national
statistics have recorded that rents have risen
on average by 13% per annum.
• On average, UK property prices more than
double every decade.
• Over the last fifty years, UK property has
only gone down twice in real terms – 1971-73,
and 1989-92. Five years out of fifty.
• Since 1956 the compounded average annual
increase in house prices has been 8.5%. To put this
into perspective, a house
bought in London 50 years ago for £1000 would
today be worth more than £1 million.
• Inflation in the last 50 years has been
1,689%. The stock market has grown by 2,700%, but
UK house prices have
increased by 22,000%.
• More millionaires have been made from the
property market than through any other investment
vehicle. |
Research:
• The newly-established National Housing and
Planning Advice Unit (NHPAU) estimates that by 2026
house hunters will be
faced with average prices 10 times their yearly
earnings. (currently at around 8 times)
• A report compiled by Oxford Economic Forecasting
in July 2006 for the National Housing Federation,
the projections show
the average house price rising to £286,500
in 2011 – a rise of about 50%. Another recent
housing figures study suggests an average
price of £300,643 by 2020. |
More
reasons:
• The UK currently needs around 230,000
extra homes a year, but only 170,000 are being
built annually, a shortfall of some 60,000.
This leads to higher property prices and this
in turn means more people unable to get on
to the property ladder.
• Average rents rose 6.5% in first
quarter of 2007 from 9942 to 10591 proving
that landlords can afford to raise their
rents.
• Unlike stocks and shares, property
is a solid, useable proposition. Everyone
needs somewhere to live.
• Unlike pensions, you can release
equity and equity release is tax free.
• Unlike other investment vehicles,
property is built on land and, as Mark Twain
once said, you should buy land, as they’re
not making it any more.
• The UK is one of Europe’s
most densely populated countries and with
immigration high and planning restrictions
tight the cost of land will continue to
rise.
• Unlike other investments, you can
buy your investment property with other people’s
money (OPM). As a result, you can take advantage
of gearing. Loan to Value is higher for UK
citizens to buy in the UK than other countries
in Europe.
• The massive popularity in buy to
let is further increasing property prices.
• Demand for new housing is outstripping
supply and there's a current shortage homes
in the UK. With the population expected
to rise up to 10% by 2030 and council restrictions
on new developments, there's no way the
supply can meet the demand.
• In recent years we have become
a nation obsessed by property. From television
programmes and the media to dinner parties
and the pub, it seems we can’t escape
it. This all fuels the increase in prices
due to people moving more regularly and
people buying buy to let because it is viewed
as the best way to secure your retirement.
• More people are choosing to live
alone. There are also those who prefer to
rent property so that moving around out
of choice or career change is easier.
• Buy to let mortgages now account
for 10% of the market compared to 3% in
2002.
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