For many years, property has been considered a worthwhile investment. Owning property by buying a home is one ambition that almost everyone aims for at some point, with many people going above and beyond by turning it into a way to make a lucrative income. This was only boosted further by the introduction of buy to let mortgages many years ago, which helped individuals to buy properties with the sole aim of letting them out to renters. However, people have now started to think of investing in property a little differently. Recently, high property prices and changes to tax regulations has meant that some people have started to question whether or not property is still an investment worth making.

 

Should You Still Consider Investing in Property?

If you are someone who is considering investing in property, you are probably aware that things aren’t quite as good as they used to be. Whereas buy to let mortgages and investing in property was a guaranteed way to boost your income easily at one point, many landlords are now struggling to make as much as they used to. This isn’t to say that there isn’t money to be made by investing in property, it simply means that it’s not always as profitable as it once was and getting started is more costly.

 

When it comes to tax, landlords are no longer able to offset their mortgage interest costs against their rental income. When this is combined with the fact that there’s now a stamp duty surcharge of three percent on all new property purchases, buying to let can be expensive initially. It’s easy to see why people are questioning whether property is still a worthwhile investment. Luckily, it’s not time to rule out investing in property just yet.

 

In order for property to be a worthwhile investment, it’s important to buy in the right areas. Buying a property and hoping for the best isn’t enough, as there’s no guarantee that you will receive the rental income that you expect. The property market has ups and downs, but some locations do tend to be more profitable than others on a long term basis. A lot of areas are currently lacking in homes for those who need them, which means that the demand is extremely high. By buying in the right areas, it’s possible to generate a continuous income as the demand for homes will always be there. This demand also means that landlords who buy in popular areas can often charge more in rent, which only boosts their overall income.

 

The case is also similar for those who invest to sell the property on, rather than investing to rent it out as a landlord. Though the housing market does have its ups and downs, property prices are increasing on the whole. This means that when bought in the right area, making a profit by selling isn’t out of the question completely.

 

Whether you invest to sell or invest to rent, as long as you invest in a property that’s going to be in high demand it’s unlikely that you will struggle to come out of the property market better off.