As a stay at home parent, you likely know how difficult it can be to stay on top of finances. Even if you have a partner who provides income through working full time, it’s often not enough. Money isn’t there to meet financial goals and pay for everything you need to for yourself and your children.
The Benefits of Investing as a Stay at Home Parent
If you have some savings available to do so, purchasing a buy to let property can be a great way to invest in your child’s financial future. Here are three reasons why stay at home parents should consider investing in property.
Investing is a hands-off way to earn an income.
Unlike heading out to work or working from home on a freelance project, investing can be a great way to earn a fixed income without taking time away from your role as a stay at home parent.
For instance, buy to let property investment allows investors to use a property management company to take care of the day to day tasks involved with letting out a property, such as finding tenants and responding to tenant issues.
Property company, RWinvest, works with industry-leading property management companies on all of their buy to let opportunities. This makes it easy for investors to earn money alongside their everyday commitments.
Investing helps you meet financial goals.
If you have specific financial goals you’re saving money for, whether this is to pay for private education for your child, pay for a big upcoming event such as a wedding, or even save for yours and your partner’s retirement, investing in property is one of the best ways to achieve these goals.
Having the extra income that comes from rental returns means you can save money more quickly. You also will know your profits will continue well into the future – provided you invest in the right area. To increase your chances of high and consistent rental returns, it’s essential to research different areas. This will help determine where you can receive the best rental yields and capital growth potential.
In the UK, some of the best areas are currently Liverpool and Manchester. Liverpool boasts a return of up to 10%. The North West region offers the highest predicted growth rates of 24% by 2024.
Investments can be passed down to your children.
One of the best things about investing in property, especially for parents, is that you have ownership of a valuable asset passed down to loved ones. While some investors choose to sell their property later in life and benefit from a significant investment return due to capital growth, some instead want to hold onto their investment and then gift it to their children once they retire.
This way, you can ensure your children can have the same financial security that your property investment gave you. However, please note that there can be tax implications involved with gifting a buy to let property. It is a good idea to do your research beforehand.