Over 50s favour BTL for financial security

The phrase 'safe as houses' hasn't been around for such a long time for no reason and it looks like more people are starting to rely on property investment once more.

Here's a story highlighting research that sees people over the age of 50 using property investment as a way of providing financial security for their retirement.

The research found that property investment was more than twice as popular as shares. Combined with disappointing interest rates for savings, the appeal of well-chosen property investments is obvious. 

In Edinburgh, we have seen a number of clients this year who are approaching retirement and have decided to put a chunk of their funds into residential property. Interestingly they are mainly buying in cash and then happy to live off the rental income as their pension.

For the sort of properties our team is buying in the student rental market the long range outlook is pretty solid, meaning investors can see a secure income for many years to come.

Being sure about the type of investment, the location and any obligations attached is key to a successful investment. Take a look at our brand-new Property Investor Guide for more information!

Looking ahead to 2014

December is upon us and it's time to take a look at what's in store for 2014. 

For the first time in a few years, most property experts agree that things are looking good for the UK property market, both for landlords / investors and tenants. House buyers can also look forward to a  bigger choice of properties becoming available. 

One of the key factors that will continue to help the market expand is the availability of finance. The number of mortgages available to investors improved throughout 2013 - this does not just mean higher numbers but also includes more competitive rates as lenders were looking to 'woo' larger numbers of clients. Mortgages for Business predicts that the trend is set to continue next year and envisages a 25% increase by this time in 2014. 

Their research also shows that around 60% of landlords are keen to increase their portfolio by the middle of next year, while only 7% are looking to shrink theirs. This means good news for tenants, as the supply of private rented property will grow as a consequence.

At the same time, a larger number of rental properties available means that landlords will need to offer quality at a reasonable rate in order to attract suitable tenants. In fact, online service Rentify predicts that rents will plateau in 2014 in all but a number of select areas. In our opinion, rents will largely remain stable, but there is potential for growth where some of the most sought-after properties are concerned. 

In Edinburgh, this would include larger tenement flats popular with students. As the student population continues to grow, these properties continue to be in high demand, offering great returns for investors.