Having a £50,000 pot of cash to invest in property might seem to some as though it wouldn’t buy very much given that the average UK house price is £231,855 – the key to making this money work hard and earn a good return is to leverage and from there careful planning and patience could open a range of further exciting prospects.
Why property?
UK property investment has proven itself to be a resilient and lucrative venture for investors with a long term view.
For example, if you’re purchasing a property with retirement in mind and choose to take a buy-to-let mortgage to double your purchasing pot meaning you have around £100,000 to spend on a property, not only would you see a profit on the monthly return but over the 25 year period, the property value may have increased by as much as 300%, a figure in line with house price growth trends in the UK. Meaning you’d have made a significant profit on the capital value over the period of ownership along with earning a regular income.
Planning for retirement, the property is often deemed the best investment option and many often consider the best way to invest £50k in property for this purpose.
Off-plan property
Buying a property off-plan is often one of the best investment routes, especially if you have a cash pot of around £50,000. Off-plan means you purchase a property before the development is complete. The benefits of buying off-plan include the huge potential for capital growth and that these properties are often offered at a below-market rate.
The low entry price points make them appealing, especially when seeking a property to buy with £50k for investment.
It is important to work only with a reputable company when buying off-plan property since you can’t physically see the development – trust is key. It’s also worth ensuring that the developer building the property has a good track record.
Where to buy
Location is paramount when it comes to the best way to invest £50k in property. To make the most out of their investment an investor should ensure they do their research as the location has a large influence over the success of the investment.
Focusing on up and coming areas is likely to be the best strategy when investing with £50k as the entry points will be lower. Investing in the right up and coming area can be hugely rewarding for an investor – capital growth can be impressive over time and the rental income strong.
There are several areas that we would strongly recommend for investment at this level in 2020 including tertiary locations around Birmingham such as Wolverhampton and Redditch. There are a great number of reasons why such subsidiary towns hold such promise for investors. Low-interest rates and impressive potential for capital growth whilst delivering strong rental returns – all make such locations very exciting.
UK property portfolio
A £50,000 sum will happily allow you to buy an initial property to build a portfolio and if your financial position allows it the cash could also be spread across several properties and buy-to-let mortgages used to fund the purchase of multiple properties.
Talking to a specialist lender who has experience working with off-plan buy-to-let purchases can be highly advantageous if you’re considering building a property portfolio.
One simple investment
Full-time property investment isn’t for everyone and in some instances, an investor might just seek to own one next egg. A single property that will grow in capital value over the years and in the meantime offer a solid rental return that covers the cost and provides some additional income.
Depending on your circumstances borrowing money in the form of a buy to let mortgage will enable you to buy a reasonable rental property in an area set for capital growth.
2024 UK Buy-to-Let Property Investment Guide
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Investing in UK property
If you’re looking for the best way to invest £50k in property our team can help you find the ideal property in the perfect location to offer capital growth potential and a reliable rental income. With rental assurance, investors can breathe easy knowing that their rental income is guaranteed, no matter of the economic climate, for the agreed period of time set at purchase.
Talk a member of our team regarding your investment options and the best way to invest £50k in property, we’re available on 0203 950 7939.
