Residential property consultants:

The Case for Property

What has been your best investment?

Think back five years; how have your investments compared? Have your share prices, ISA’s, pension funds, savings or property price increased the most value?

IPD 2006: comparable historic performance over three and six years (Investment Property Databank)

Real capital growth from 1981-2003

The residential investment property market has outperformed all types of commercial property investments based on source information from IPD, NSO, Communities and Local Government.

Gearing

The banks loan you more than you put forward as a deposit yourself. Given the same level of growth in a particular year, you would make more money as a percentage of what you invested.

Time Value of Money

Each year the price of goods and services increases by the rate of inflation. In real terms money is devaluing at the same rate as good and services are increasing. £ 100 today will not buy you the same amount of goods and services that it could a year’s time. This can work in your favour because your mortgage is taken out at today’s price while each year your salary and rental income increases. Residential property values should increase over time while mortgage values are decreasing in real terms. 

Rentals or capital growth statistics

In times when capital growth is slowing or there is a lack of activity from first time buyers there is an increase in rental demand and subsequent rental income.
39% of investor letting agents reported (Q2:2008) that there were more tenants than properties. A historical record high for the Association of Rental Letting Agents www.arla.co.uk

Please look at the ARLA History of buy-to-let investments 2001-2007 ?

One Touch Solution provides consulting on residential property investment