The United Kingdom is blessed with many things from a strong economy to a bustling tourism industry to countryside charms to metropolitan lights to well-renowned educational institutions to a healthy population and the list goes on. It’s therefore not surprising that more and more people want to come and stay in the country either for vacation, for work, for school, for business or for good. That and the fact that residential investment property UK are so in demand.
In a world where it’s almost always everyone’s first instinct to buy, renting or leasing has created a market upon itself. It has satiated a need and comes with its own set of perks or advantages for lessees. Think about it. Not everyone has the resources to buy outright and more often than not, the good properties with reasonable prices are pretty much snatched up already. Either that or they come in hefty price tags. After all, the demand for real estate in the country has grown significantly in years. Plus, buying isn’t practical when we’re not planning to stay for years.
But on a lessor’s standpoint, why should they choose to rent out their residential investment properties UK? Why not just sell it?
Finding a tenant is oftentimes faster than finding a buyer. Some assets can stay listed for months or even years which can be costly to owners and even be very detrimental considering the losses incurred. Remember that maintenance should still be upheld to keep the place functional and in good shape until a buyer shows up, if they ever do.
Renting out provides investors with an added income stream, oftentimes a regular one too. Leasing out will create rental income which is payable every period, either monthly, quarterly or yearly depending on the terms of the lease contract. How about the costs to owning the assets like maintenance and taxes? Many of these can be deductible from the total income to lessen tax liability.
Opting to lease also stamps one’s ownership and hold of the residential investment properties UK. Doing so will allow you to retain ownership which means equity is preserved. Despite having tenants occupy the space for the time stipulated and paid for within the bounds of the signed contract, the landlord or investor still holds the title to their name. Should you wish to sell this asset after some time or use it yourself will be all up to you. Selling, as the name suggests, will transfer ownership to the buyer.