Broadly speaking, property is a great investment. Bricks and mortar have long been championed as a way to generate ongoing passive income if you fancy tying your cash up for the long-term. There are a variety of different investment strategies to adopt with property but, in general, is considered a sensible and secure investment.
However, since the 2016 referendum there has been a hubbub surrounding property in the UK. Late last year it was reported that the UK property market was at its weakest since 2012. Whilst figures make this true, the media have used scaremongering tactics through the entire Brexit negotiation process. Therefore, it is not surprising that some investors are getting sweaty palmed thinking about their property investments.
The benefits of property investment
There are a multitude of different options available when it comes to investing in property. Traditional avenues include buying to let or sell, whereas property bonds are becoming more and more popular. Regardless of whatever option of property investment is selected, benefits typically comprise of:
- Capital appreciation
- Healthy returns
- Increase value easily
- Property is evergreen
- Banks and mortgage companies are happy to back property investments
However, a key perk of property investment is the opportunity to be totally in control of your cash; you can choose exactly where your money goes. Whilst the market itself fluctuates and can have moments of unpredictability; you can also rest assured you control your cash. Investors are also in control of:
- The type of property you invest in
- The loan or mortgage you select
- How you handle the property
- The purpose of the property
- How you handle any profit
- Whether you want a hands-on or hands-off investment
Investment success
If you have the money to get started with property investment it can be very lucrative. There is an abundance of investors who have made their fortunes in either residential or commercial real estate investment and many investors use property investment to supplement their portfolios and expand their investment strategy.
Property gains won’t appear overnight, however. Investors should be prepared to tie up their cash for a long period of time when investing to see greater returns in the long-term. Whilst market fluctuations will be normal, it is possible to generate revenue during a negative period if the right opportunity is selected for you.
Should I invest in property?
Where you invest your money should be a discussion between yourself and an independent financial adviser. Property is just one spoke of a huge investment wheel that has endless opportunities. However, it is one of a few investment choices that can be life changing when part of a long-term investment strategy. Many people use property investment returns to fund their children through university or as a buffer for retirement.
Whilst investing in property shouldn’t be approached in a Gung-ho fashion many industry experts are stating that property investment is still a viable and often lucrative choice. The property market will always face turbulence, especially with Brexit uncertainty still rife. However, through political and economic turmoil the property market has always rejuvenated itself and investors adjusted their strategies to suit.
There is no way of predicting the future of property investment. As with any asset class, your capital will always be at risk. However, people will always need a roof over their heads so bricks and mortar will continue to be a solid addition to any portfolio.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.