Why Savvy Buyers are Investing in Property

We take a look at whether bricks and mortar is still a wise place to put your money and consider if now is a good time to buy.

For most of us, our house is first and foremost our home; the place where we feel safe, celebrate life’s milestones and make precious memories with family and friends. But buying a property is also the biggest single purchase that the majority of us will ever make, so we also want it to be a sound investment for the future. And if you’re looking to enter the property market, you’ll want to see a good return on your investment in the short term too.

We take a look at whether bricks and mortar is still a wise place to put your money and consider if now is a good time to buy.

Investing for the long term

Property prices fluctuate year-on-year, depending on the state of the property market, demand for rental properties and wider economic factors. If you’re looking to buy a home with a view to seeing an increase in its value, then patience and a longer-term outlook is key. According to the UK House Price Index (HPI), average house prices have risen by a huge 124% over the last 20 years and 70% in just the last decade.

You can maximise the chances of seeing the value of your home rise by doing detailed research before you buy. Consider up and coming areas, major regeneration schemes and developments close to planned new infrastructure and transport improvements.

Buying to Let

According to the British Landlords Association (BLA), savvy investors will be looking to expand their portfolio in 2023 to meet an increase in rental demand from tenants looking for high quality homes. The rental market is growing, with the 2021 Census revealing that one in five people in the UK now rent a property from a private owner. The BLA estimates that the average rental yield in the UK is currently around 4.7% and experts believe this could increase as the months go by.

New-build homes can make great rental properties, offering low-maintenance living and cheaper energy bills for tenants. New developments are often located in prime residential areas, close to local amenities, good schools and transport links, making them an attractive option for younger families and professionals.

What’s more, a new home offers a fresh, clean and neutral finish, so owners won’t need to spend time and money getting the property ready to let.

Getting in Early

If you’re buying a new build property, it’s worth getting in early and potentially buying ‘off plan’ where the sale is agreed before the house is built. Being one of the first to purchase on a development means you’ll have the pick of the available plots, be able to personalise the home from day one, have the security of a guaranteed price and could benefit from rising values as the community becomes more established and new facilities are completed.

 The Benefits of New

Whether you’re looking for a long-term home or are buying to let, a new property can be a sound investment. New homes are designed for modern living, with popular open-plan living space and flexible accommodation such as the option for home offices. They are built to the latest building regulations, are independently quality-checked and come with a 10-year warranty

New homes are sustainable homes – built for the future – and that makes them a good investment for the long-term.

If property sounds like the right investment opportunity for you, why not find out more about the range of homes available on Tilia developments across the UK.