People always need somewhere to live, making real estate (land and any structures built on it) an important asset to have that will appreciate in value over time. Average UK house prices have increased from £26,187.81 in 1983 to £294,844.95 in 2022, and we can expect this uptrend to continue as long as the economic machine does the same.
There are a variety of ways to enter the real estate market which will depend on your financial situation, strategy and objectives. If possible buying outright without debt is hugely beneficial, either on your own or through pooled equity with trusted friends and family. If that's not an option there is bridging finance available for short term development projects, or mortgages for long term buy and hold investments. If you're looking for a bargain you can find homes that may need some work in auctions, just be sure to visit them and do your research first.
An alternative approach is to purchase a plot of land and then build a property to your requirements. Advances in construction technology also present more cost effective housing options such as the container homes in the video below:
Home ownership continues to slip further out of reach for the average person, increasing from 7.9 times the average salary in 2020 to 9.1 times in 2021. This means fast, flexible and truly affordable housing options like the above and flat-packed homes such as Boxabl are likely to become more common in future.
When choosing a home or land location is always important, it can affect the future potential of the property and it's important to be prepared for anything. Ask questions suited to your needs such as:
Are facilities like hospitals, schools, military bases nearby?
Is there open space for farmland?
What future developments are being planned in the area?
Is it in a developing country that has a lot of potential for growth, or may present other risks?
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