Investing in property: why it’s a smart move in the modern economy
Property has long been seen as a relatively safe bet when it comes to investment. While there have been some declines here and there over the years, the general trend in the property market is usually upwards – and that’s because ultimately there is always going to be a demand for places to live. Whether you go for a house or a flat, there are plenty of reasons to invest in property. This post will explain why property is seen by some as the ultimate investment asset – and why newbie investors should consider the sector for their cash.
A versatile asset
Unlike investing cash in, say, an index tracker, there’s so much that you can do with a property once you’ve bought it that it seems like a no-brainer. The first thing that you can do with a property, of course, is live in it – which can be seen as an investment in your own self and your future. However, a property can also be purchased as a designated investment asset. You can use it as a holiday let, for example, or as a long-term let for a tenant. Properties can also be converted into shops, renovated and sold on. Almost everyone will be able to do something investment-related that suits their skills and circumstances when they own a property.
Relatively stable prices
As with any investment, nothing is guaranteed in the world of property. However, compared to other forms of investment, property is actually one of the most stable. Some predictions even suggest that the UK property market could rise by several multiples of 10% in the coming decades! However, the main root of property’s stability actually lies in how it performs over the longer term rather than the demand for it in the here and now. Places change and evolve, but properties remain in place – and in general, this means that you can benefit from any positive changes in your area, such as regeneration or redevelopments, even if it’s in 20 years’ time!
Value adding
Adding value to your property is something that you may not be able to do right now. It does, after all, cost money to do this: whether it’s adding an extension or simply doing up the kitchen and bathroom, none of this comes cheaply. However, if you get on the property ladder now either as an owner-occupier or as an investor, then you may well find that in ten years’ time, you have the capital to invest in your property and add as much value as you can to it. As experienced investor Ali Seytanpir knows, it’s all about thinking to the future – and property purchasing is a great way to do that.
Investing in property is, on the whole, a smart move. While it’s never possible to tell for certain exactly how the property market will move, it’s generally possible to have confidence that owning a property will be a positive long-term move – whether that’s because of general upward market trends or simply down to a positive change in your own financial circumstances.
