Over the past couple of decades, numerous investment avenues have developed, adapted and at times, crashed. Property has been a consistently popular investment option over the past 20 years and recently the market has started boom as house prices steadily climb. Investing in property comes with a lot of perks that might not be obvious at first but can prove it to be a much more popular and secure option than other 'paper' investments.
The primary benefit of property investment is, of course, the additional income and financial security. The property market has consistently outperformed other investment options, particularly traditional 'paper' investments such as stocks and shares and is a far more popular option than 'leaving' you money in the bank. Property growth has consistently increased over the past decade and shows no sign of stopping; it allows you to not only receive a monthly rental income but also, long-term capital appreciation. Property investment isn't usually just considered to be purely an investment opportunity, but also a hobby, pastime, or project for some. Restoration projects are becoming an increasingly more popular avenue as people aim to not only save a property from demolition but also to make it more attractive and increase the value of the property.
Property is a unique investment option. It is one of the few investment avenues that allows you to invest in a physical, tangible object. This gives the investor a level of flexibility that isn't available with most 'paper' investments as they can not only choose how long to own the property for but to also use the property however they may please. The investor can stay in their property, choose the tenant, select furnishings, and refinance the property with very few limitations. Additionally, it can be as much of a hands-off investment as other avenues with management options available in most developments which continues to give investors even more flexibility with increased UK location choices or even overseas options.
Many investors may choose a target to work towards when looking at property investment. This may be preparing for retirement, helping their kids with university support, or travelling. There are huge tax advantages of owning property including protecting the investor’s estate and inheritance that may be passed on. Reaching these targets are made even easier with the range of lending options available, primarily the standard buy-to-let mortgage. Additionally, deposited funds on some off-plan developments can generate interest, creating an added bonus before the development is even completed.
Overall, property investment is one of the more unique investment avenues available but can prove to be one of the better opportunities. You may need a larger amount of starting capital than other options, but with the additional lending and financial security of owning a tangible object makes property investment a more popular option.
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Read the video transcript below:
Welcome to the latest Ask Johnsy where we ask, what are the benefits of investing in property? So, first, bragging rights of course. Going down the pub and telling your mates that you’ve bought a new house, a new swanky apartment in a city centre. What could be better than that? But obviously, there’s other benefits, bigger benefits. There’s, as well as the obvious thing about having more money, being able to leverage your money with the banks and making your pot of money much larger to invest in much bigger things so you’re using bank’s money to buy things that are going to give a positive impact to your life. You know, you’ve got financial long-term security there, you know, you’ve got an asset, you’ve got collateral that you can use off against other lending.
Short-term, you know, you can create an income stream. As well as having your income from your day job, you can have an income stream from your property. In a lot of cases, that exceeds peoples jobs. Also, investing in property can be a hobby, an interest, you know a pastime, a project. You can do up property, you can make property more attractive and increase the value of property. So, a lot of people, some people do this just as a hobby, more so than for financial gain.
Also, a lot of people use it to work towards a target. So, a lot of people do invest in property when they work towards their retirement. Obviously, when you’re working towards a target, it’s always important to have a good exit strategy. But yeah, working towards retirement, working towards sending the kids to university, going on a world trip, and saving up for a world trip, people do it for a lot of different reasons, and I’ve seen them all.
Also, people take in a lot of knowledge about the market and actually we’ve seen a lot of people invest in property and then become even more involved in it, actually become a specialist, or become a property consultant even. A lot of people who invest get the bug, and there is a bug there, there’s a real attraction to this market, it’s quite addictive. Obviously, there’s huge tax advantages of owning property and obviously protecting your estate, your inheritance that you’re passing on, and one thing, big reason for investing in property is they’re not making any more land, what we’ve got is what’s there, so there’s no other better investment out there in the world than investing in property. So, thank you for watching Ask Johnsy.
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