Traditionally, the majority of people dreamed about owning their own home and setting down roots. Younger generations have brought a change to this mentality, through changing attitudes and the rising costs of buying a property.
Getting a mortgage is a long term commitment that many people are starting to put off until later in life in favour of having more freedom to travel and enjoy leisure pursuits. The rising house prices and pressure to have a sizeable deposit are also pushing more and more people towards renting.
Another big thing that has brought about this change is how easy it is for people to look at properties now. In previous years you had to go to an estate agent and browse through printed materials of homes that were on the market. Now with just a few clicks you can browse hundreds, if not thousands, of available properties in and around your area. This convenience means people can easily get an idea of the market and see what is on offer, increasing the potential for people to move around rather than stay in one place. On the other hand it can also put potential buyers off if they struggle to find their dream home right away.
The shift is good news for many investors, because higher demand is predicted for rental properties all over the UK. This means there are many opportunities to purchase a home and let it out. Finding tenants, especially when you choose a popular area, should be relatively easy when you can offer a property in a good condition.
The news is doubly positive for investors when you see that prices for homes have dropped marginally at the start of 2015. Conditions could get slightly more turbulent as well with it being an Election year. This makes renting more attractive so investors can wait for price growth to return over the coming years. By 2020 prices are expected to have risen by up to 25%, meaning short to medium term rentals could increase in the meantime.
Property investors need to take care when deciding whether to sell or let a property. It is always wise to look at the conditions in the market so you can decide which option is the best for you. Also, keep in mind that letting is a more long term commitment and there will be costs associated with managing and maintaining the property. However, when you are working with a professional property company you will not have to worry about management. We specialise in property and estate management in Croydon and throughout the rest of London, and can provide a full and comprehensive service for your needs. If you need any kind of assistance with your property portfolio, we are here to help.