Annual Return from Property Turns Positive
Annual property investment returns turned positive in October for the frst time since the UK sank into recession, After taking rental income and the slight fall in house prices into account, a landlord investing in property a year ago would have made a 2.4% return.
The last time residential property provided a positive return was in the year to July 2008 on property bought in July 2007, just before the credit crunch began. The worst time to invest was February 2008. Anyone who bought a rental property then can expect to have lost more than 11% by February this year, as rents fell and property prices dropped like a stone. By contrast the best time to invest was April 2009 as those buyers can already expect to have earned 7.4% in rent and rising house prices, equivalent to an annual return of over 15%.
Once again, investors can now look forward to property providing them with a decent return. Rental income has been the key to an early return to proft. Those who timed their investments well are already doing even better. Brave investors who jumped back into the market in the spring are enjoying very healthy returns with a good balance of income and capital appreciation.
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