At Prideview Properties, we regularly speak about the commercial property market in the UK, and similarly relate a number of tips and hints for you to make use of as you go about your own investing, but we talk about the actual advantages of property investment far more infrequently. On the one hand, plenty of people already know about the benefits of property investment, but on the other hand a good number don’t realise quite how attractive it is, and have yet to take the plunge.
The Reward
Investing is hardly anything new, and there are plenty of different investment types that can be pursued. However, there’s no denying that property is one of the best and most reliable ways to invest your money, and if you’ve yet to consider entering this field then you’re really missing out!
Put simply, property is an asset that commands stability like no other form of investment. Property offers two ways to make a return on investment, which are as follows:
- Rent: Usually, the idea of investing in property of any description is to rent it out to a tenant (or several). This rent gives you a steady and consistent source of income.
- Sale: When you buy a property, you’ll inevitably look for the best deal out there. If you can then sell this property on for a higher price in later years, you stand to make a lot of money.
Because of the relative stability of the property market, you can create a balanced portfolio of assets that greatly minimises the chances of your investment falling through. Furthermore, real estate investment has constantly stood as a kind of ‘safeguard’ against the rate of inflation, and many people have found that their property investment has been able to largely nullify the rising prices of recent years.
The Risk
All of this is not to say that property investment is devoid of risk. Property prices do fluctuate, so you could theoretically invest in a premise, only to sell it on for less than you paid. However, with commercial property and the like riding the crest of a wave at present, this potential issue shouldn’t occur very often.
Perhaps a more pressing concern is the fact that property investments are usually very pricey, and tie up your money for a very long time. Despite this though, property investment remains the only way to purchase a product using the help of a bank loan, and then pay back this sum with somebody else’s cash (i.e. your tenants’ rent). As such, whilst you can’t hand-on-heart say that property investment is risk-free, it’s about as close as you’re going to get.
If you’re looking to get a foothold in the world of commercial property investment, then the Prideview Properties commercial property agents in London would love to hear from you. We know exactly how to pinpoint all of the best deals, so with our guidance you can rest assured of a profitable investment. To speak to us about your prospects, contact us now by calling 0208 863 8680 or send an email to our professional team at [email protected].
