In it for the Long Run?

by Jason Howard - Property Investor Partnership

7:44 AM, 22nd September 2018
About 3 months ago

In it for the Long Run?

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In it for the Long Run?

Discussions over the future of a post-Brexit Britain are dominating the media right now, and unsurprisingly tension levels are running high. Concern of a no-deal Brexit and negative reports are only spreading fear around people’s financial future.

When you have worked hard for your money, how can you trust where to invest it? There are so many options out there; stocks, banks, shares. . . but here’s the thing, none are as resilient as property.

History reveals that in times of uncertainty, property has outperformed all other asset classes. In fact, within the past 50 years, there are only 5 years where investors potentially would have lost money, making it considered a lower risk investment choice.

The property game is not a short one, even if the economy goes bust and interest rates rise, property will carry you through it. You just have to be in it in the long haul if you want to see the return on your capital.

What are the perks of property?

Wealth Creating / Income Generating – Unlike other asset classes, property enables you to gear your investment through investing a percentage of your cash rather than all of it. Property provides an attractive and sustainable income for investors, which if compared to a typical savings rate will provide income of up to 10 times that amount.

“Property prices in Yorkshire have risen by 21% on average in the last 5 years. So a landlord’s property which initially cost £200,000 in 2012 would now be worth circa £242,000. With a monthly rental income on top of this, it certainly acts as a perpetual advantage to investing in property.”- home.co.uk

Rental Demand – Demand for rental property has doubled since 2002. It is estimated that 20% of the UK population will rent within next five years, which is great news for buy-to-let investors.

Economic Investment – Despite the economic questions over Brexit, the UK Government has made significant commitments to increase national infrastructure, creating an even greater rental demand across commuter areas, market towns and putting lesser known regions firmly on the map.

Housing Supply – The latest Government estimates suggest that around 232,000 new properties need to be built in England every year to keep pace with demand however the number of new homes being built is now at the lowest levels since the 1920’s. This places a greater demand on existing housing stocks and new developments.

Is there a best time to invest?

Now! There is no need to be put off by the negative press. In the midst of turbulent times with Brexit negotiations and the mid-cycle wobble the market is currently experiencing, there is still no better time to invest.

To enquire about our current investment opportunities please contact us using the form below and we will be happy to help.

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