Investment
Succeeding in property investment...
Investing in property is a medium to long term strategy and has to be viewed against a number of factors on a local and national scale, including:
• Past performance
• Supply and Demand
• Demographics
These are the general criteria that large investors and national and international companies use as a background to their investment decisions. The small investor is making investment decisions which are just as important and critical to him, he/she should also bear them in mind.
Past Performance
In recent years, the UK Residential Property Market has performed consistently well when compared against other asset classes, such as equities, gold and funds etc.
Over the last 40 years, property has increased in value by an average of 11.3% per annum, with the added bonus of rental income. Whether this rental stream is used to finance borrowing on the property or as personal income, the average gross yield on new property is around 5%, and rises as a percentage of the initial purchase price as the rent increases.
Development investment with MCD can provide an average of 20% return on the initial capital invested.
Supply and Demand
It may be a surprise for most people outside the industry to learn that the UK is, in recent years, producing less houses than at any time since the First World War. Simple economics dictate that a shortage of supply for something as essential as housing, means prices must rise as demand is made on that supply.
This is good news for the investor, as the UK’s increasing population and strong economy, coupled with low interest rates is set to fuel the demand for housing for some time to come.
Demographics
From a demographic viewpoint, pressure is coming on housing from all fronts. People are living longer, so they are not passing on their homes to the younger generation or they must be re-housed in alternative accommodation. Family formation is happening at a much later period in people’s lives than in the past, from mid to late 20's, 25 years ago to mid to late 30's today. Renting is now not only more affordable but has also fulfilled young people’s need for flexibility, with many people claiming that it enabled them to live in better areas and nicer properties than they would be able to buy themselves.
MCD Consultancy offers investors a comprehensive, ‘one-stop’ solution - and are able to handle every aspect of the investment process, from choosing the property or development site in the right location, obtaining the best possible planning permission, managing the construction process through to organising the property sale or rental management.
Together, we can ensure your success. To discuss in more detail contact Matthew Davis directly on 07835 387393
or e-mail matthew@mcdconsultancy.co.uk