There are many benefits to including property in your portfolio. And when it’s done right, property investing can provide additional monthly income, meaning you can build the future you deserve.
Since the Global Financial Crisis hit in 2007, investment markets have remained turbulent to say the least. During this time, property markets in places such as London have consistently remained profitable. An unrelenting demand for property and low interest rates are resulting in higher rental yield opportunities and as such presenting a great opportunity for investors to maximise their returns.
So, if you’re thinking about investing in property, here are four good reasons why you should:
1. Tax & Inflation
The only way to battle inflation is to make more money. Property investment can be used as a tool to fight inflation. This is due to rising prices increasing the resale value of the property over time. As the value rises higher, the amount of rent tenants pay can increase over time.
2. Capital Growth
Capital growth is profit made on an investment measured by its market value over the cost price. In layman's terms, this is the amount of money you make when you sell your investment property. During the 2007 Global Financial Crisis, markets slowed and prices dropped, however over the last 12 months, the property market began to boom and property prices are set to rise in 2021.
3. Building Equity & Wealth
If purchased properly, a property can continue to generate healthy cash flow even during a downturn in the market. Building equity may give you more leverage to buy more properties which can increase cashflow and wealth for the future.
4. Portfolio Diversification
Think about the phrase ‘don’t put all your eggs in one basket’ which is what springs to mind when talking about portfolio diversification. The addition of property to your diversified assets can lower volatility and reduce the risk of market slumps.
When it comes to property, it is important not to fall into the traps of the many “get rich quick” schemes which are circulating social media. Property investment should be long term goal. It’s important to think about what you want to achieve from the investment such as amount of income and time frame. Whilst property can represent a good long-term investment opportunity, it’s important to invest in the right ones and to seek help from the experts and professionals.
Skybound Property provides an end-to-end property investment service right from sourcing and financing a property, ensuring all the relevant protection is in place, through ensuring the very best return is achieved when a client chooses to realise their investment. So, what are you waiting for? Get in touch today to see how we can not only support you in your property investment, but also ensure your long-term goals are realised.