It is reported that only 8-accounts actually offset the effects of inflation for basic rate taxpayers.  None at all exists for higher rate taxpayers!

 

As rising inflation and falling returns from traditional methods forces savers to look for an alternative home for their money, we have experienced more and more people seeking property acquisition as a much more fruitful investment vehicle.

Traditional insured and deposit savings accounts offer little, if any, comfort to savers who watch their funds steadily eroding with many seeing inflation eating into their hard-earned savings faster than it grows. This creates a special nightmare to those approaching retirement who were relying on life-long pensions, savings and investments to provide comfortable senior years.  

 

Low interest rates, high rental demand and improved lending in the Buy-To-Let (BTL) sector makes conditions ripe for those willing to make the most of the current market to establish/expand their portfolios by capitalizing on the undenyable fact that more Brit's than ever must rent.

Prudent investment in Buy-To-Let property is more hands-on for the investor/landlord therefore, they feel more involved, though it should not be viewed as a 'get-me-rich-quick' arrangement.

 

Many NEW investors have come to us in the last year with little or no experience in property investment, who seek to learn how to establish and build a property portfolio effectively and efficiently in order to provide a growing, medium-to-long-term investment that someone else can't tinker with and which can produce additional income very quickly.

Despite Government having pledged £250m to help 10,000 first time buyers, the fact remains tenant demand has hit a 2-year high throughout the UK and is likely to continue to rise. 

It is predicted that 1:5 households will be in the private rented sector (PRS) by 2015.

 

In the meanwhile, whilst lenders sort out the mess they have gotten themselves into within the residential sector, opportunity to provide sustainable and long term returns within the commercial or BTL sector offers somewhere other than the banks to invest money.  

 

Making the most of this new era-of-letting is essential to the savvy investor in particular and the British housing market in general.

 

Leave a Comment