Investing in bricks and mortar has long since been a trusted source of income for many mainland UK based investors, but now it seems as though residents of the Isle of Wight are all set to get in on the act too. Where savings accounts have been (and still are, for the time being) the number one choice for those with some spare cash on the Isle of Wight, things are starting to change here.
Property giant Barratt Homes recently reported an increase in interest in the market, with 43 per cent of people saying that they would consider putting their money into property if they had upward of £25,000 to invest. This figure was bolstered by the fact that, of those surveyed, over half said that they consider investing in bricks and mortar to be a better bet than taking a punt on the stock market. And with the recent volatility seen in stock exchanges across the world, who can blame them?
Why the change in attitude?
This dramatic change of heart from Isle of Wight residents could be due to any number of reasons. However, chief amongst those is likely to be the recent changes that have been made to the pension laws here in the United Kingdom.
4.5 million people across Britain who have Defined Contribution pension schemes can now get hold of their money from the age of 55 to do with as they please. Even those with Defined Benefit pension schemes in place may have the option to swap over to a DC pension should the necessary criteria be met, increasing the number of people able to access the pension pot further still.
With this access to ready cash, many are looking towards property in order to get the highest return on investment possible from their money. In many people’s eyes, investing in property – whether that is on the Isle of Wight or elsewhere – could see them receive a greater reward than if they opted to leave their money in the hands of the government.
Regular income is still important
As part of the survey conducted by Barratt Homes, 70 per cent of those asked said that they would be looking for an investment that provided them with a regular return on their initial investment rather than one that would bring home just a lump sum after a given period.
This would go a long way to explaining why there has been an increase in interest in the property market, as investing in buy-to-let properties can offer the investor the best of both worlds – a regular return and an opportunity for capital growth once the property is eventually sold.
So, despite the fact that savings accounts are still top of the heap at the moment, many of the Isle of Wight’s inhabitants are looking to follow the mainland investors’ lead and get involved in the property market in the near future. This could prove to be an interesting development and it is certainly one that we will be carefully monitoring over the coming months and years.
Feature image credit: Garry Knight via Flickr.
If you enjoyed this blog post then perhaps you would like to read “A Guide to UK Property Investment for 2016“?