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Statistics show that property has consistently outshone all other commodities during the last ten years. When you are considering why to invest in property, research is paramount to acquire the knowledge and statistical evidence.

What prevents most people from investing is the ‘Fear Factor’. What if interest rates rise? What if the bubble bursts? Will I experience Negative Equity? I cannot afford the mortgage or where do I find the deposit? Sound familiar! Well interest rates are currently very attractive, the banks and lending institutions are aggressively offering mortgages and buy 2 let deals.

If or when the bubble does burst; it is normally due to the feel good factor disappearing in first time buyers. However, thinking of this logically should this occur; everyone requires somewhere to live and if not buying then they must rent.

The true canny investor knows this and in occasions of recession, rate rises, high price / low demand housing, the investor knows tenant demand will increase.

It was Mark Twain who quoted “Land, buy it all, they are making no more of it”. How true. As developer land banks disappear, the government has encouraged the use of brown field sites and in some instances green field sites. Residential units become smaller, parking is no longer a necessity and on top of all this the population explosion continues.

From an academic point if view, the university towns and cities of the UK continue to grow and expand as the government promote learning institutions. Another extreme is that the national divorce rate is also spiralling out of control.

Phenomenal Equity Growth

The UK has witnessed phenomenal property equity growth over the last few years. This is no surprise. The UK continues to attract overseas investment and spending. The surge in personnel call centres, science parks and distribution centres tells us that from an employment point of view the North – South divide is indeed closing.

High Expectations

My own feelings are; “with a property, you can admire it, work on it, receive a passive income from it, own an income earning asset, monitor equity growth and have a tenant pay most if not all of your overheads. Above all, the physical presence is exciting when showing friends, family or colleagues.”

Furthermore, believe it or not, the bigger your portfolio becomes the easier and quicker you will expand. Every day before going to work I receive a pay rise, as my portfolio continues to achieve equity growth.

As we all strive and aspire to achieve financial freedom, for me property is the answer.

Dean Sanderson MNAEA CU LLM