Factors To Consider When Investing In Property
In today’s volatile environment, there’s one investment standing out from all others in the UK: property. Despite the worry that Brexit would have an adverse effect on property prices, the weak pound has brought an influx of interest from overseas property investors keen on grabbing a piece of the property pie in the UK.
Whether you’re a domestic or overseas investor, if you’re looking to invest in property there are four elements to consider:
1) Choose a mix of commercial and residential
Ensure your property portfolio has a mix of commercial and residential property to mitigate risk. While both are traditionally strong in the UK, a variety of factors can sometimes change the landscape quickly. For example, the changes to buy-to-let tax relief, which suddenly made buy-to-let investment more costly and, ultimately, less attractive to investors. By spreading your risk across commercial and residential you mitigate against such issues. Developments that combine both are also worth considering.
2) Don’t forget to include investments outside London
While London has traditionally been the most resilient of the property markets in the UK, there is substantial opportunity outside London, such as in the Northern Powerhouse cities. In fact, government investment and private investment continues to pour into Liverpool and Manchester reflecting the significant changes happening in these cities. The North West is booming and savvy investors are following the money for strong returns.
3) Look for solid returns with minimal effort
For a significant investment, you should expect significant returns. Guaranteed income at regular intervals through the year should be a “must-have” for any major financial outlay. The profitability of your investment should also be measured against your personal investment of time, which is why buy-to-let is often a good return on the face of it until the level of commitment is taken into account. Consider the personal level of activity required to realise your return. There are a few property investments which are completely “hands-off”, so look for opportunities that allow you to enjoy returns which are automatically paid into your account on a regular basis.
4) Seek security with new forms of property investment
Unless faced with a severe financial downturn, property in the UK is generally a safe bet. Even when property values fall, historically they bounce back stronger. Every investment whether it is a standard off-plan, property bond or peer to peer investment will comes with an element of risk tied to the level of reward. When looking at property investment, try to assess how de-risked the investment really is. For example, property bonds are an effective way to buy into developments with a high return but have traditionally been too risky for some investors. Certain property bonds, however, bring the level of return you would expect for the investment but without the risk. These “de-risked” property bonds offer security for the investor with a charge on the property so that – should the worst happen and the company collapses – investors are at the front of the queue for recovering their money.
If you are looking to expand your UK property portfolio or want to buy into the strength of the UK market as part of a high yielding property bond, Acentus Real Estate has options available with up to 12% fixed annual returns which pays you direct every 3 months from a property bond opportunity which comes with a very competitive low entry of £10,000. Call our team right now to find out more about this exciting opportunity.
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