Many people invest in property with the expectation of capital growth. They expect that the rental income from tenants will cover the mortgage costs and any outgoings. If you live in Croydon, Kent and London we, at Adiva Accountants in Croydon, can help you plan and structure the investment appropriately.
Due to financial crises, the stock market has had its ups and downs. Additionally, many people have lost the confidence in pension funds as a means of saving for the future. At the same time the bank interest on savings have been at lowest for decades. Therefore, it is not at all surprising that investors have looked elsewhere.
The UK property market, despite its ups and downs, has proved over the long-term to be a solid investment. As a result of this, buy to let market has seen a massive expansion. However, the gross return from buy to let properties is not as attractive as it once was. Investors need to take a view on the likelihood of capital appreciation exceeding inflation. They need to consider the fact that mortgagee interest rates have been at a low level for a long period of time, and will rise in a near future.nn