If you are looking to invest in property, there is nowhere better than Leicester. Keywest estate agent Leicester are here to help you make an informed decision

Once upon a time it was highly fashionable to invest your money in a second property. Whether this was as a holiday home or to rent out, it seemed as if everyone was purchasing second houses or even building up a whole portfolio. Then the credit crunch happened, the bottom seemed to drop out of the housing market and suddenly mortgages became much harder to come by the first time around, let alone the second or third time.

But as the economy slowly but surely starts to poke its head back out of the water, the housing market is once again booming. And with interest rates remaining at a record low, is this a good time to put your money into property?

As with everything financial, you need to take a full assessment of your assets and look at your long-term expectations for your finances. If you have a large lump sum, then you may want to invest in property as an alternative to a standard savings account, taking into consideration the current low interest rates.

However, some savings accounts, cash ISAs or stocks and shares ISAs will offer you better interest rates for long-term investments, which means you won’t be able to instantly access your cash, but the chances are it’ll be growing at a faster rate than if it’s just sitting in your savings account. So this isn’t a great idea if you need to get to your money quickly.

However, investing in property is an even more long-term commitment.

If you have enough for a good deposit, then you will hopefully have a large amount of equity in your home when it’s time to sell. But you need to say goodbye to this money for a long time, so it’s always a good idea to make sure you still have enough accessible savings to cover any emergencies.

If you already own a home and are looking for investment opportunities, then you could consider becoming a landlord and renting out your second home. This should give you enough rental income to cover this mortgage, and when it’s time to sell you will release a good lump sum to take you into your retirement years.

You need to do your homework, though, if you’re planning on going down this route. Being a landlord is a commitment, and there are regulations you need to follow to the letter. You’ll be responsible for the property and insuring the building, and you’ll need to carry out and pay for any necessary repairs.

However, once you’re up and running it can be a good way to make some extra income while protecting your investment. If you’re considering investing in property and would like to speak to Keywest about becoming a landlord, call us on 0116 254 4555. We can help take the stress out of managing a property.