Tag Archive | property investment

Average earners need to see their salaries doubled to keep up with rising house prices


housing crisis

If average earners are to get on the housing ladder they would need to have seen their wages more than double over the last decade. This is despite the crash in 2008 and the subsequent problems that this brought with it. The property market has seen a significant recovery in prices whereas wages have seen very little growth. This means that property values are now totally out of sync with wages and average earners in London would need to see wages increase by £100,000 per year in order to buy in some parts of London. These figures have been put forward by Shelter, the housing charity that have carried out research from 1997 to the present date.

Since 2003 house prices on average have gone up by £1000,000. This compares to the annual average salary that has risen by just £6,750. If you take London and the south-east out of the equation the average house price across the country has risen by £73,000. You can see why house prices look very inflated when wages growth has been so low. Average earnings have a long way to catch up and house prices look as though they will continue to rise further particularly if there are not enough new affordable homes being built to satisfy demand

Freehold Ground Rents


Not a lot of people will know that you can invest in freehold ground rents. Most of us will have paid a ground rent to our freeholder at the end of each year if we owned a flat that is, but not many people will have actually invested their money in buying these types of investments.

They are becoming increasingly popular amongst property investment  companies as they generally offer a good return on the money invested and you can more or less guarantee that your ground rent will be paid each year. If you purchase the freehold of a building you will be the person that receives the ground rent income each year. If you decide that you want to try to manage the property yourself (good luck) you will normally be able to charge your lessee a fee for doing so but be warned you will have to deal with the day-to-day running of the block and be on call for any emergencies that need tending to.

Most investors simply just want to collect the ground rent each year without dealing with the management of the building and therefore instruct a management company to look after the building. As a general rule ground rents are paying a return of between 5% – 7% so whilst interest rates are this low they may be worth having a look into. I will be updating this blog regularly but if in the meantime you have a ground rent to sell please visit my site at Ground Rents for Sale

 

Freehold Ground Rents


Not a lot of people will know that you can invest in freehold ground rents. Most of us will have paid a ground rent to our freeholder at the end of each year if we owned a flat that is, but not many people will have actually invested their money in buying these types of investments.

They are becoming increasingly popular amongst property investment  companies as they generally offer a good return on the money invested and you can more or less guarantee that your ground rent will be paid each year. If you purchase the freehold of a building you will be the person that receives the ground rent income each year. If you decide that you want to try to manage the property yourself (good luck) you will normally be able to charge your lessee a fee for doing so but be warned you will have to deal with the day-to-day running of the block and be on call for any emergencies that need tending to.

Most investors simply just want to collect the ground rent each year without dealing with the management of the building and therefore instruct a management company to look after the building. As a general rule ground rents are paying a return of between 5% – 7% so whilst interest rates are this low they may be worth having a look into. I will be updating this blog regularly but if in the meantime you have a ground rent to sell please visit my site at Ground Rents for Sale

 

Ground Rent Investments For Sale | Landlords No Fees


See on Scoop.itFreehold Ground Rents

Ground rents for sale across Britain. This is our up to date list of properties for sale.

See on www.groundrentsforsale.com

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