House Prices Set To Rise by 350% – So Say The Lib Dems!
Lewis, our Head Of Finance, has been busy this week comparing property prices with the FTSE 100.
His research clearly shows that property has made for a far more lucrative investment in recent years. Over the last 16 years (since 2000) the stock market has actually fallen by 5% (Source: Yahoo Finance – FTSE end of day) and average property prices have increased by 45% (Source: Nationwide House Price Index)
But as we know, past performance does not predict future growth, so what can we expect property values to be like in another 16 years’ time?
Well, new research by the Liberal Democrats published this week predicts that the cost of the average family home will rise to over £1M by 2032 – that’s an increase of 350%:
To be fair we think that the research is politically motivated and that is a somewhat sensationalist figure but, having said that, there are to our mind still many economic factors at work that will result in pushing property prices much higher over the next 16 years. If we are correct then it would seem to us that investing your money in buy to let still makes excellent sense – especially when you are able to remove many of the hassles involved in it by investing via crowdfunding.
And what if you could also potentially reduce some of the risks by letting to a blue chip tenant on a long lease with an assured rental being paid every month so that, unless they renege on the contract, the property will be let for 5 years with no void periods. If you can do so, you can simply collect a decent return with no hassle whilst your property rises in value.