UK Government research indicates that 45% of landlords own a single property, while 17% own 5 or more properties. Furthermore, this second group own 48% of all private rented properties in England.
The reasons for investing are, unsurprisingly, investment related, with 46% preferring property to other investments, and 44% seeing it as a pension contribution.
BUT - annual rental incomes were less than £20,000 for 61% of landlords. Worse still, this is on a gross basis, meaning that net incomes will be be under £10,000 in many cases.
While this research was published in 2019, we have three observations which we believe still hold true:
1. Strategy is critical
Are investing for annual cashflow, or focused on a retirement which is many years off? This should point you to different types of property investment.
2. Understand the returns before and during the investment
What are they, and how do they compare to other asset classes? This should be understood not only before the purchase, but also over the life of the investment.
3. Growing a portfolio is easier said than done
While many aspire to build a substantial portfolio, the data shows that it's not easy to do well - or at all.
BellPepper is here to solve these challenges, so visit our site or give us a call to find out how we can help.
