Investing In Property During Lockdown
Investing In Property During Lockdown
It goes without saying that for many, the current global pandemic (COVID-19) has caused many people to reconsider their finances. Unfortunately, lots of people have found themselves in a situation where they have been furloughed, are working reduced hours or have been made redundant and this has led to curiosity regarding how they can invest their money for the future. With many different options to choose from, families are looking at which is most beneficial during these current unpredictable times.
At this moment in time, some families will be looking into investing in the UK property market and during lockdown, it is actually a brilliant time to invest in property if you’re able to. If you have been contemplating investing in the UK property market during lockdown, keep reading today. Our team here at Fielding Financial has put together a list of reasons why now is a great time to invest in this way.
Long term investment
Many who choose to invest in property are looking for a long-term investment and this is undeniably a brilliant type of investment to have currently. Not only is property known for being less volatile than stock markets, but currently, the stock market isn’t giving the high returns many are used to, so the long term investment of property is much more beneficial both now and in the long run.
Reduced costs of borrowing
Due to the current pandemic, interest rates have dropped and therefore the cost of borrowing is going down. So, if you need to get a mortgage in order to invest in the UK property market, which many do, if you have a large deposit you will likely get a great rate for your mortgage. You will be surprised just how much of a difference this interest rate drop could make to your investment overall.
Demand for housing
There is still a huge demand for affordable housing here in the UK and the private property sector is more important than ever before. Unfortunately, whilst the cost of borrowing has gone down if you have a large deposit, many lenders aren’t offering high low-to-value mortgages currently. This has left many unable to purchase and instead they’re looking for rented properties. So, if you’re interested in buy-to-let investing then this is a good time for it.
Dip in property prices
As you may have expected, the current coronavirus pandemic has caused a slight drop in the housing market. Many properties are more affordable than they were at the beginning of the year, so it is undeniable better to invest in the UK property market now, especially because experts predict that this dip in the market will recover quickly. You can get a good investment property for a fraction of the price without having to worry about things in the long term.
It is highly likely that the majority of sellers will be more flexible during lockdown too, especially if they were eager to sell before the pandemic. You may find that price negotiations are much easier and the sellers’ flexibility enables you to invest in properties you wouldn’t have been able to otherwise. For many, grabbing opportunities as they present themselves will be better than waiting around to see what happens.
Investing in the UK property market
All in all, there is no denying that if you’re looking into different ways you can invest during lockdown then it is well worth looking into investing in the UK property market in more detail. Whilst it may feel like there is an awful lot of uncertainty at the moment, you can trust that even though there are risks associated with property investing, you can confidently invest in this way knowing that you will benefit from everything mentioned above.
If you’ve never invested in the UK property market or the property market elsewhere in the world before and you would like to find out more, visit the Fielding Financial website today. We are an award-winning property investing company and we are passionate about delivering training to others who are looking to invest in property. On our website you can find information about a range of different property courses that we offer, so if you have any questions at all about any of these, don’t hesitate to get in touch today, we will be happy to assist you further.