How to become a property millionaire
Making your first million from property investments
The number of £1 million homes will triple by 2030, so now is the time invest in property to become a millionaire. Find out how to begin your personal property portfolio.
New research from Santander shows that the number of UK homes worth more than a £1 million is set to triple by 2030. Last year there were 499,803 homes that were valued above this price tag, which counts for 1.77% of the total UK housing stock. However, the soaring property prices in London will encourage these figures to hit 1.6 million of homes worth more than £1 million, which represents a more substantial 5.14% of UK millionaire homes by 2030.
With UK interest rates at an all-time low and only a small rise in the base rate being predicted over the next twelve months, savings accounts are not the best place to watch your money grow at present. If you want to invest your money and gain a sizeable return, then property is a better avenue to pursue in 2016.
So how do you become a property millionaire?
Choose your properties with care
Even in this market, not every property has the ability to rocket in price at a speed that will offer you a good return on your money. Some types of property and certain areas of the country are much better suited to property investment than others. If you’re looking at buy-to-let investments, then flats usually represent a better return for your money than houses. Camilla Dell of Black Brick surmises “Generally speaking, flats make better buy-to-let investments than houses, and if your budget will stretch to a two-bedroom, two-bathroom flat, we would always advise that.”
Always look for a property that you’re able to add value to. Loft conversions that might add an extra room, office, gym or storage area could add 20% to the price of your property and don’t usually require planning permission. You could also add an ensuite bathroom in a particularly large master bedroom or perhaps make the most of the space in a double garage.
Location, location, location
The area in which your property is located is arguably more important than the actual accommodation itself. Be sure to invest in up-and-coming areas that young professionals are attracted to. These might include suburban areas of London that are on-the-up or more affordable housing stock in vibrant cities such as Manchester or Liverpool.
If you really want to be ahead of the market, then take the time to consult future transport plans. If there are new stations being built, or a high-speed line that will cut the duration of key commuter journeys, then these are the places to be investing in before others get wind of a good deal.
Diversify
Much like those who invest in stocks and shares, it doesn’t pay to put all your eggs in one basket. Instead spread your property portfolio out over a handful of decent initial investments, which is a less risky strategy to follow. If you are curious about the funding options for property investors, then consider 700,000 mortgages, which are designed for those that require large mortgages for a range of personal and lifestyle goals. As interest rates are rock bottom, then there has never been a better time to take out a sizeable mortgage which will give you a great start on the property investment ladder.
Begin your property research today by looking at web property portals such as Zoopla as well as regional area guides so that you’re able to gain a thorough understanding of where the property millions may be waiting for you!
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
You May Also Enjoy
What to know when buying land
Tenant demand strong, landlord supply shrinking
Why Join a Letting Agents Association?
House price growth remained subdued in July
Rent hikes and tighter tenant checks as landlord costs climb
