RP Property & Lettings

External influences – Friends, relatives, society etc. can get in the way of you investing in property. With all the negative articles in the media, the rise in interest rates and the drop in house prices it can be difficult to summon up the courage to invest even if deep down you feel it is the right thing to do.

Internal influences – Fear, doubt, pessimism, over thinking etc. your emotions can also get in the way of investing in property. You may feel overwhelmed, anxious and dam right scared of taking such a massive step. It can be difficult to overcome negative thinking especially when you combine it with the external negative influences that are all around you.

However, even if you leave your hard earned money in the bank, the interest that you receive is determined by the bank, inflation eats away at your money over time and just like any investment, your returns can fluctuate.

Well lets have a look at how the property market has fluctuated from the 1990s to now:

In the early 1990s, mortgage rates were between 5% and 7%, which is higher than they are today.

House prices increased by 87% in nominal terms over the period of 2001 and 2004.

Although prices fell by around 18% in 2007, this was in the wake of the credit crunch.

By 2012, interest rates were low and the growth in house prices reached double digits.

However, in 2019, with the onset of Covid, it appears that everything came to a halt including the property market.

2023 has seen a rise in interest rates, a drop in property prices and according to the media, a property crash is imminent.

Well peeps, we are now in December 2023 and interest rates seem to have stabilised (some banks are even reducing their interest rates on some of their products) and according to the Guardian, Nationwide and Halifax, house prices have increased over the past 3 months.

So why choose to invest in property…

The thing to remember when investing in property is that it is for the long term. Yes, you can make money from flipping properties but this strategy tends to be for investors who have a high appetite for risk. If you are looking to invest in property for the long term then you can benefit from not only making a passive income from the rental market (bearing in mind that rents have increased considerably over the past few months) but over time the profit from your property portfolio will grow.

So with this in mind, talk to us about your goals and what you want to achieve and we will help you to become financially independent and make your dream(s) a reality.