Making
Money From Property UK |
Money
from real estate/property investment has been the most powerful type of
investment for building wealth. The reason property is such a commanding way to
make money is due to leverage associated with it.
For the experienced
investor this is obvious, but for the benefit of those who are new to it leverage
is the use of borrowed funds at a fixed rate of interest in an effort to boost
the rate of return from an investment. Increased leverage causes the risk and
return on an investment to also increase.
Keep your money in the bank
is considered as the safest option to get some guaranteed increase in the value
of your money.
Taking the bank at an assured maximum return of 5% per
year, your money of £100,000 will return at the end of 5 years an amount
of £127,628.
Take the stock market and admittedly over the last
few years the stock market has been popular moneymaking option in the UK. Though
it is really hard to say what sort of return you get from the stock market, let
us assume a 12% return every year. Now 12% return on £100,000 will return
at the end of 5 years an amount of £176,234.
Now in the growing
market of UK, let us say the property market grows at a rate of 6% over the next
5 years, so how does that form to be a better money making option.
It
is property, which allows you to leverage £100,000 to purchase £500,000
worth of property. (£400,000 borrowed from your bank). Now at the end of
5 years your investment of £100,000 becomes £269,115.
So you
have increased your initial investments by 2.6 times over a period of 5 years.
So you can make more money from property UK than what the stock market or bank
can provide.
So what else do you need to make leverage work for you? Ponder
on the options below before investing on the property of your choice.
·
When buying, be clear whether you are buying solely for investment, or partly
for your own use.
· Whether you intend to let out your property for
long periods (e.g. 6-12 months) or on a short-term basis for holidaymakers
The augmentation of global economy makes property investment UK the best
way to make money. Yes you will need much more skills to make money from property
UK, but with time using leverage with calculated investments property UK can
become the best investment option to make money.
|
|
