While saving money is undoubtedly important, investing in property may be an attractive alternative for those looking for an extra income or valuable nest egg for the future.
Here are just some of the advantages of property investment and why it may provide a better return than standard savings accounts.
Steady growth in value
Investing in property provides an exceptional opportunity for capital appreciation. Historically, the UK property market has shown steady growth, making it a reliable asset class for investors. Over time, property values tend to increase, allowing investors to benefit from significant gains.
Over the years, property prices in the UK have increased. Official figures from the Office for National Statistics (ONS) show the average UK house prices rose from £167,716 in January 2013 to £290,000 at the end of January 2023 – a gain of 73%.*
While short-term market fluctuations may occur, it would seem that property prices should continue to rise according to this data.
Conversely, the British pound has consistently declined. This means that your savings are less valuable now than they would have been before.
If you’re considering investing in property, talk to your local estate agent first. They’ll be able to offer tips on where you should invest and ensure you’re the first to know about potential investment properties.
Create a stable stream of income
By investing in residential or commercial properties, landlords and investors can secure a stable source of income that can add to t their regular earnings or even replace them entirely. This steady cash flow may make you more financially secure and give you a budget for investing in new properties to rent out.
Protection from inflation
In an economy where inflation can erode the value of money over time, property investment serves as a robust hedge against inflation. As inflation rises, so do property values and rental incomes, providing investors with a shield against the depreciation of their wealth.
Increased stability
Property investment offers a valuable opportunity to expand one’s investment portfolio.
While stock markets can be volatile, property values tend to be more stable, particularly in prime locations. This stability can help balance overall investment risk and provide a safeguard during turbulent economic times.
Thinking about becoming an investor? Contact our team today for more information
