There are many options for investing your hard-earned money, from bonds to stocks, equities and even gold. And with so many options available to you, how do you know if investing in property will be the right one for you? Truth be told, only you will know if it’s ultimately the right choice for your money, but we can help you make an informed decision by arming you with the right knowledge to make that decision.
We all work hard for our money, so you may be thinking why not enjoy the fruits of your labour right now? But, enjoyment is also precisely why you should think about investing: to capture that feeling, and secure a comfortable and enjoyable life, for longer. Investing now will mean you’ll be able to secure your future and experience all the things you want to, without having to worry about money. If you’ve worked hard for so many years, you deserve to have a retirement that’s secure, and allows you to live comfortably. And of course there are also the multiple tax break benefits you can receive from property investment which is also a bonus that will help your financial situation in the here and now.
Once you’ve decided to invest, the next step is deciding where you want to put your money. There are many reasons why property makes a solid investment here in the UK, but right now interest rates are at a significant low, meaning it’s an especially great time to buy.
Remember, you don’t need to have a huge budget to invest. In fact, the Prideview Group has helped many first-time and smaller investors get their foot in the door with investment property. However, like with all investments the best decisions are made with thorough research, and so we’ve highlighted just a few of the benefits of property investment below.
Relative Stability: Like all markets, there will be peaks and troughs, however the UK property market has traditionally been very stable compared to other investment options, and offers solid returns with less volatility. Commercial property in particular, has been a strong performer in recent years, with many people opting for this over residential properties as they often provide for better yields (as rents are generally higher). Also as there is still a greater demand than supply, meaning you’re in good stead for getting a solid return, sooner.
Diversification: If you’re already an investor, property allows you to diversify your portfolio past traditional investments (like bonds) so that you can manage your risks and not “put all your eggs in one basket”.
Double the returns: With property, your money can work extra hard, as there are two potential sources of return. First, you can lease your property, giving you a long consistent source of income, and, later down the track you have the option to sell it in a strong market for a profit.
Control: Unlike other investments, with property you’re not just handing over your money and hoping for the best. You are involved in the decision from start to finish, can buy or sell as you please, and as long as you have a tenant, you will have a steady income even when the market is soft, allowing you to hold onto the property until it’s in a strong position to sell. Win-win.
Are you the right candidate?
So, how do you know if you’re the right investment property candidate? If you’re unsure, it’s worth speaking to a financial advisor who can give you sound professional advice on whether this is the right strategy for you.
If you’ve decided to make the leap, congratulations! The next step is to get your finances in order and make sure you’re ready for purchase. This includes: doing your market research, deciding what type of property you want to invest in; working out your strategy; knowing your competition and what risks you can take, as well as mapping out and exit strategy. To learn more about property purchase next steps, read our blog “5 Questions You Should Ask Yourself Before Investing In A Property”.
Of course, as with all investments there are some potential risks to property investments, like being at the mercy of the market, being subject to buying and selling fees and not being able to access your money quickly. However, with proper planning and thorough research you can lower your risk by doing your research and planning for all possible outcomes and have a solid, profitable income and an enjoyable life for years to come.
If you’ve made the decision to invest in property in the UK, view our current portfolio of Investment Property For Sale. Be sure to also register your investment requirements via our property form and you’ll receive alerts when new properties become available, all tailored to your specific requirements.
Alternatively, if you’d like to some advice on property investment or have any questions regarding your investment requirements, contact us on +44 (0)208 954 0878 and our highly experienced team will be happy to assist. We look forward to helping you secure the best investment for your future.