Buying property as an investment has risks. The value of your property can go down as well as up. You will be liable for the repair of your property and will have to maintain the mortgage payments even if you have problems collecting the rent If you can view your investment over the long term The average age of a first-time buyer has risen by 26% during the past 30 years, increasing from 27 in 1977 to 34 today, according to mortgage lender GE Money Home Lending This means that people are renting for longer periods prior to buying. Demand for property appears to exceed supply. The population of the UK is growing at an average rate of 0.7 per cent. It is projected that by the year 2016, the population will have risen by 4.4 million to 65 million. This growth is higher than in previous years. Increasing population, immigration and smaller households are contributing to the demand for property. In its summer forecast, the Construction Products Association said that UK housing starts - where construction physically starts on site - were likely to be around 147,000 this year, the lowest annual number since 1945, and 27pc lower than 2007. As an investor you need to identify what you want from this investment. Have you identified an area with strong short term potential or are you looking for a long term investment, possibly as a form of pension income. |