Schemes to help individuals get a foot on the property ladder have been offered for decades, enforcing the idea that owning property is the most traditional and guaranteed way to accumulate profit.
Britain´s obsession with owning property was arguably kick-started after the Housing Act 1980 was implemented by Margaret Thatcher; giving council tenants the opportunity to buy their home gave residents a goal to strive towards, and owning a home became just what everyone did.
This mind-set is still evident in a large proportion of the population nowadays, even though it has become a less desirable position to be in. The world has changed dramatically since the property market´s profitability was at its peak, and it seems that now this cash cow has been taken to the slaughterhouse.
The archaic view that becoming a landlord will ensure a constant flow of income has been seriously tested in recent years. The recent Help to Buy scheme created an onslaught of buyers who were following the herd of individuals who always believed the common misconception that owning a home will alleviate a substantial amount of financial burdens.
Over the last nine years, stamp duty totals have increased by over 215 per cent. Stamp Duty Tax (SDLT) must be paid on property that is over the price of £125,000, and with the average house price in the UK now at £232,969, an extra £2,159 must be paid alongside all the other costs that come with buying a home.
Purchasing a property to flip and sell is almost unheard of in today´s climate. Over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England. For the last 11 months, house prices have consecutively remained at a stagnant rate of below 1 per cent, resulting in a constant buyer´s market.
Becoming a landlord is also a risky move, as if the intention for a property is to be rented out to tenants to generate steady income there is always the potential of an empty building.
Having no tenants and a mortgage will ultimately put an owner in a worse position than when they started, assuming that their own mortgage or rent is being paid alongside the empty home. There is also the possibility of nightmare tenants who leave the property in a state that needs to have even more money thrown at it so that it returns to its original state.
However, there are other ways to be involved in the property market without going through all of the above hassle, therefore saving your bank balance and peace of mind.
Accumulate Capital offers investors that chance to receive 11-15 per cent ROI after just 12-18 months. High net worth individuals and sophisticated investors can be a part of fantastic property development in prime locations, carried out by reputable developers.
Project updated, investment memorandums and constant communication with dedicated brokers ensures a comfortable, confident and well-informed investment journey, all while their funds are being constantly grown in the background.