Current market conditions are causing business owners and entrepreneurs to believe it’s the right time to explore property investment opportunities.
More than 80% of UK business owners plan to invest in property over the next 12 months, according to a survey released by bridging loan broker Finbri. The most favourable option to invest in right now is residential property, while commercial property follows close behind.
The positive outlook on UK property investment comes as additional finance options have become available and a less competitive market will allow business owners to explore new opportunities.
Finbri’s Stephen Clark says: “Investing in property has been a go-to for landlord entrepreneurs and business owners alike for two decades. The uplift in capital growth has created a lot of wealth, so it comes as no surprise companies continue to seek out these opportunities.
“Businesses with a free high cash flow appear to be keen to take advantage of current market conditions – possibly where those who are now exposed to higher interest rates are looking to sell their property.”
Why are business owners turning to property investment?
Despite concerns about the UK economy and economic stagnation, business owners are showing strong interest in investing in property right now and are feeling optimistic about this form of investment.
While some large global corporations are cutting back on investments and employment numbers, according to Finbri, UK business owners are overwhelmingly in favour of property investment this year.
Investing in property can come with a range of benefits, including building wealth, gaining financial security and providing a great source of income. It can also help diversify investment portfolios, providing the ability to spread the risk of other asset classes.
Additionally, property values will likely go up over the long term, and when prices increase, investors can benefit from those gains. A property’s equity can also be relatively easily accessed through refinancing if a business requires a quick injection of cash.
Because of these range of benefits, property could prove to be a secure investment for the future of many UK business owners and entrepreneurs. The financial rewards that come with being involved in the property sector are unmatched.
What should businesses and investors consider?
There are of course risks that come with property investment, including fluctuating house prices as they can go up or down. And if the rental income falls short of mortgage repayments and other costs, businesses could then be left with a financial shortfall.
But if you do thorough research and invest for the long term, UK businesses are more likely to be successful and benefit from property investment.
Many people feel UK property provides long-term potential as the housing market has shown its strength and ongoing stability. This has particularly been the case in recent years when there has been economic uncertainty.
What’s the property sector look like right now?
Recent and historic trends are demonstrating a strong buy-to-let market with unprecedented levels of tenant demand. The UK housing market as a whole has rebalanced after months of high-speed transaction levels and soaring house prices.
As there has been a rise in market confidence and mortgage rates have steadied, the buy-to-let sector is currently seeing a boom. And the property market as a whole is in better health than many had predicted at this point in the year as it continues to build momentum.
There are many markers in the buy-to-let sector that show a strong market, and interest in the UK property investment space remains extremely strong.
Browse some of our latest projects at BuyAssociation, or get in touch today to find out how we can help you achieve your long-term goals through property investment.
