Should savers turn to property investment?

With savings accounts and bonds still offering anything from a measly 0.5% to around 3%, those who save are being hard hit under the current monetary circumstances in the UK.

Pensioners and those with enough nous to realise the importance of investing with a good income, are being penalised through the banks and building societies inability or unwillingness to give fair returns. The historically low Bank of England rate of 0.5% is helping to fuel the low returns.

However, there is another way; owning a home and renting it out. Becoming a landlord is easier than you think and the returns are two fold; you get a monthly income and when the property prices start to rise, your investment has also increased.

In fact there has never been a better time to invest for those with savings or a stable job where they are able to secure a mortgage.

Property prices are low but are expected to bottom out in the next few months so capital investment potential is good. Returns on lets are also good as more people seek to rent being unable at present to secure a mortgage without a substantial deposit.

This points to the reasons that Hillreed Homes, developers of fine homes in the South East for over 35 years, has looked at some of their available properties and based on location, square footage and facilities, have priced the potential rental return so that those wishing to invest can see immediately what is possible.

“If you buy a new property to rent then everything is new including electrics, gas and appliances- so no unexpected repair bills. There is no cost in getting the property up to the latest standards and your tenant can move in and you know that you have peace of mind with a two year warranty and an NHBC 10 year guarantee”, says Jo Richards Marketing and Corporate Manager at Hillreed Homes.

All you need to do is buy, soft furnish, appoint your letting agent and you are ready to go.

There are now even “Buy to Let” mortgage rates available as low as 3.39%
So what is available? As an example you can purchase a one bedroom apartment with parking in Maidstone for £139,950 and get a return of around £595 pcm

In Ashford you can purchase a two bedroom split level end of terrace property with garage for £162,950 with a potential return of £695 pcm.

At Kings Hill in West Malling a two bedroom apartment at £184,950 could bring in a whopping £900/950 pcm.

At Goodnestone near Canterbury a two bedroom end of terrace house with car port and space at £199,950 should bring in around £725/£750 pcm

For a full list of over 30 properties refer to hillreed.co.uk investment.