Property Investment: What are the Risks? : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Property Investment: What are the Risks?

August 12, 2013

Property Investment: What are the Risks?

Kent, UK (RPRN) 08/12/13 — In today’s precarious financial environment of failing banks and volatile stock markets, property investment is widely viewed as an attractive alternative which grants the individual far more freedom and much greater potential returns. While this is true to an extent, it is important to fully understand the subtleties of the endeavour and, perhaps more importantly, the risks involved.

Property development is big business these days. TV programmes such as Homes Under the Hammer and Grand Designs have garnered a lot of interest for the enterprise through the last few years and encouraged a lot of new investors to try their hand. It is certainly an attractive prospect - stories abound of incredibly cheap houses being sold for gargantuan profit, so with such massive success on the cards, how hard can a bit of renovating possibly be?

This, unfortunately, is precisely the thought process that lands many eager beavers in a heap of trouble. The sheer volume of work and responsibilities involved in overhauling a worn-out property is far greater than it may appear, and when factoring in the numerous inherent risks and no guarantee that the property will even sell at a profit (if at all), property development can quickly become a minefield for the unprepared.

Buy-to-let has long proven a fairly safe bet - it is estimated that there are 1.5 million landlords currently renting out properties in the UK, with the private rented sector valued at £480billion - an increase of 42% over the last five years. With house prices inexorably on the increase, more and more would-be buyers are opting to remain in rented accommodation, meaning a bountiful income for private landlords. Rent incomes are also supplemented in the long-term by capital growth, which can provide a welcome lump sum when owners decide to call it a day.

It’s not all sunshine and unicorns, though - letting does not guarantee profit, or even income, if the property fails to find a tenant. In some cases, maintenance costs can even exceed any rent that may be coming in. Mortgage rates are also notoriously inconsistent, and with buy-to-let mortgage rates rising in particular, it is predicted that landlords are set to take a blow to the wallet in the coming months.

Another possibility is presented by companies who carry out the building process itself. After purchasing plots of land which already have planning permission, these businesses seek investors to help fund their projects, and through wise use of economies of scale, are able to generate a return for participants with relatively little risk.

One such company is Kent-based Regal Green, who have the added benefit of operating in the affluent South-East of England. Director Charlie Gallen explains the process further: “Essentially, what we do can let our clients put their money to work without having to put themselves through the trauma of renovating, which is very labour-intensive, or the drudgery of letting, which can take decades to pay for itself. Our process only takes two years but still brings in fixed returns of 20 to 25%.

“I think that with so much uncertainty in the markets, a lot of people are just looking for something a bit less complicated whilst also being lucrative.”

While the fact remains that no investment is without its risk, the kind of opportunity put forward by Regal Green is a great alternative investment for those who choose to put their faith in property without getting involved in development or letting. Find out more by visiting the Regal Green website at www.regal-green.co.uk.

 

Further information is available from:

Regal Green, 129-132 High Street, Tonbridge, Kent, TN9 1DH

Telephone: 01732 759430                            

e-mail: enquiries@regalbs.co.uk               www.regal-green.co.uk

Media Contact Name: Dean Spencer
Media E-mail:
Media Phone: 01332 253840
Media Web Address: http://www.grapevine-group.co.uk
Company Contact Name: John Ward
Company E-mail:
Company Phone: 01732 759430
Company Web Address: http://www.regal-green.co.uk
Click here to see all news from this author/company

Filed Under: BANKING AND FINANCIAL NEWS, PRESS RELEASE, United Kingdom

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Zikto taking award-winning Arki to Startup Nations Summit

Seoul, Korea 11/22/14 · Zikto taking award-winning Arki to Startup Nations Summit The...

The End of Transparency? Don't be a fraud target

Carrollton, TX 11/18/14 · - Over the years, progressive and productive societies...

Ultraseal international in finals of Midlands Business Awards 2015

Coventry, UK 11/14/14 · Ultraseal International, which exports to the automotive supply...

Arki: Hot New Wearable Tech Setting a Cracking Pace on Kickstarter

San Francisco, CA 11/14/14 · Update for November 21: 412 Backers $90,034 pledged...

UpWest Labs Unveils Details of Its Eighth Batch of Startups, Ranging From Genetics to 3D Design

Palo Alto, California 11/11/14 · Accelerator continues to support innovative entrepreneurs with its...

Modern Casting Impregnation helps automakers to avoid warranty claims on engines

Novi, MI 11/11/14 · Automakers can save money and avoid costly warranty...

The Evolution of Walking: Wearable Tech steps up to a new level

San Francisco, CA 11/11/14 · Arki: Finally Wearable Meets Fashion – Wearable technology is one of 2014’s...

GeneSegues Awarded $1 Million Phase II NIH/NCI Research Contract for Nanoencapsulated RNAi Cancer Therapeutic

MINNEAPOLIS, MN 11/10/14 · Highly Competitive NIH Program Validates Potential of GS-10...

More Than 400 .Onion Addresses Targeted as Part of Global Enforcement Action on Tor Network

WASHINGTON 11/07/14 · More Than 400 .Onion Addresses, Including Dozens of...

Learn about Wine in Your Pjs - A New Kind of Wine Class

SAUSALITO, CA. 11/04/14 · The Wine Key announced today it's first virtual...

XCEL Professional Services Has Made a Huge Change to Move Our Company Forward

Calgary, AB 11/04/14 · Introducing Rob Hay: The New President of XCEL...

Furries and Despair – two-man show at Canessa Gallery, November 7 Wild is beautiful

San Francisco, CA 11/03/14 · The show  "Furries and Despair" at Canessa Gallery...

Ristech Completes Acquisition of Kirtas Technologies Inc.

Victor, NY. 11/03/14 · With the acquisition of Kirtas Technology, Ristech increases...

Signed, sealed, delivered: Email best practices

San Francisco, CA 10/31/14 · Email is the original Web app. Born in...