How Can I Secure My Family's Future Financially?

Whether you are planning on starting a family or you are buried deep in the chaos of family life, one thought you might be having is how you can secure your family’s future financially. Recent research, by the Centre for Economic and Business Research, suggests that the average cost of raising a child has an alarming price tag of £148,000 to £277,266. With this cost rising year on year, it is increasingly important to be savvy with your investments and plan for the future.

There are a number of different ways you can save and invest for the future; baby bonds, investment funds and saving accounts, to name a few, but it is property investing that is becoming an increasingly popular choice for modern investors.

Property is an attractive option for a majority of families new to investing. Not only is it a tangible investment, investing in a property allows you to take control and add value for a greater return. For some people, the benefits of property investing make it a familiar investment avenue to take, with the process of buying a house being one which many are accustomed to. (1)

But what are the reasons you should consider property investment to ensure you and your family are financially secure in the future?

Rental Rising Demand

Rental demand in the UK is at an all-time high, according to property experts Rightmove, whose latest report reports asking rents outside of London have jumped by 2.7% in the second quarter of 2015. (2)

The two major markets for rental properties at the moment are students and young professionals. Property prices, especially in London, are rising, meaning the vast majority of city centre workers are being priced out of the market. This is despite the introduction of a number of Government schemes designed to provide a financial boost to first time buyers.

Properties in the capital are increasingly being put on the rental market, however, the attractive location comes with an expensive price tag and a high number of young professionals can no longer afford to live in the city. A recent Centre For Cities article pointed out that due to the property phenomenon buy-to-leave, where overseas investors snap up UK properties and then return to their home country, many residential buildings in London will be left empty. The buy-to-leave trend means international investors are further pushing up the price of property in the capital and so are adding to the existing UK housing crisis. (3)

There are an increasing number of upcoming towns within reasonable commuter distance to London, including Reading and Brighton. These towns are a great option when looking to
invest in HMO properties with young professional workers look for affordable and modern properties to rent. 

However buy to let is booming in other cities as well, with Manchester becoming a popular alternative for young professionals, and an attractive average rental yield of 7.9%Remember your children will eventually grow up and move out. They might go to university or make other plans but by investing your money now in a property, you will have the flexibility to support them through these decisions and passage into adulthood.

Inheritance Tax

If you are planning on passing down property to your children in the future, you can now do so and avoid paying any inheritance tax. Thanks to the 2015 Conservative win in the UK General Election, there is now a £175,000 transferable allowance in inheritance tax for main residences. In addition, those over the age of 55 can now withdraw 25% of their entire pension pot tax-free. (4) This change in the law makes property investment a great long term investment.

A Lick of Paint

When you invest in property you will naturally want to know how you can quickly and cost effectively add value to your investment. As many experienced UK property developers have demonstrated, to quickly add value you will need to modernise, neutralise and develop.

Modernisation is often the key to unlocking value on a property. By ripping out old and dated appliances in the kitchen, bathroom and bedrooms, you can easily change the look and feel of a property instantly. The extravagant interior design is risky with rental property renovations and will often put off potential tenants if the decor is too out there. 

rental properties refurbishment selling profit housing manchester

Not only will the property look aesthetically pleasing but also as a landlord, you will be better off financially with appliances that are hard wearing, energy efficient and sustainable than dated

interiors, which may require expensive and frequent maintenance. Plain and simple interior is easier to touch up and maintain than a particular wallpaper which if damaged will need to be completely replaced.

Painting the walls a fresh pastel colour with a varnish of white gloss on doors, window sills and banisters will help to give a fresh first impression to potential tenants.

HMO Development

Being clever when it comes to property development is important. If you invest in a property with a number of bedrooms, there is potential to convert the property into a HMO, to house a number of single paying tenants. This could not only double your rental yield but also help to provide a financially stable property investment as if one tenant moves out you will still have the remaining tenants paying rent. To find out why HMO properties are increasingly popular among landlords and tenants visit our related article.

Providing a roof over your family’s head can mean putting a financial safety net in place for any future eventualities. With many young professionals struggling to afford a place of their own, it should be a serious investment to consider for family’s looking to grow and support themselves. To discuss property investment opportunities further contact The Heaton Group:


  1. This Is Money - Will bricks mortar secure retirement
  2. Rightmove - Rent rise surge
  3. Centre For Cities - Blaming overseas investors for the London housing crisis is hitting the wrong target
  4. Conservatives - Plan
  5. Telegraph - The new inheritance tax rule is out, what next?

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