Property has track record of success that few other options can match. There are few investment opportunities that can claim the same consistent level of reward.
Why is property such as popular option for investors?
When it comes to deciding where to invest next, there is little doubt that property is, and probably always should, be on the agenda. Many of our clients have multiple investments in a range of properties and often other markets as well. Shrewd investors have been acquiring property as standard practice for hundreds of years and main reasons why hasn’t changed. Property pays a good return in several ways. As with any financial strategy though it will not be right for some, so below are just a few thoughts on the current property investment market, particularly when it comes to city living.
- You are investing for the long term
Property is not usually a quick return. Most of our seasoned investors look to their property portfolio as a long game strategy. Values rise over time and that increase has also been consistently above the rate of many other investments. Of course, there are property developers who will look to ’flip’ an investment quickly but that is a much more volatile market and a more intense process. If you are looking to a quick investment return, then clearly rental property may not the best option. If you are playing a longer game, then it is certainly worth more than a look.
- Developing areas offer a good return
One of the big decisions to be made when it comes to investing in rental property is the location. 55 Queen Street, Manchester, for example, is one of our hottest property offers at the moment. It has the advantages of city centre living as well as being in a rapidly developing area with heavy investment, which means multiple employment opportunities in a range of sectors. Yet, because it has the Manchester location advantage, properties start at just above the 160,000 mark and return from rental ranges up to 2k a month for high value properties. Compared to other areas it currently represents a very attractive investment opportunity. As Manchester develops, these apartments are unlikely to lose their appeal to investors, but they may well become less available. So, they are worth considering if you are able to acquire them soon and add them to a long-term investment strategy. Other areas such as Bastion Point in the heart of Liverpool have similar potential, so there are plenty of options.
- Renting is a convenience for professionals
Since the shift to the ‘gig economy’ style of contract working, renting for the duration of a working contract is becoming the new norm. As the cost of commuting rises, we are also seeing higher demand for city centre living accommodation. Many mid – high income professional and couples are looking to enjoy all that a bustling metropolis has to offer, while still being close to the workplace. Many apartments are also spacious, well-appointed and located centrally so that hybrid working also makes them an attractive life choice.
- Renting is becoming the norm
The bottom line is that despite government schemes and incentives from several sources, buying is often not an option for many people. The cost of deposits, mortgages and the difficulties obtaining finance on any property, let alone a prestigious city apartment, are often prohibitive for many. Renting is now the first option for many and this is tending to become more common. That means a demand from the marketplace that is unlikely to change.
All of the above should also be put into the context of the remarkable reliability of property as an investment. While there are spot changes to the market it has consistently proved to be a strong, reliable, long-term investment since records began. Of course, there are no guarantees but that is true of pretty much all investments. If city centre property is not appealing to you then there are other opportunities, and you should look at all your options. If you do fall into the category of investor who is able to take advantage of city centre rental property opportunities though, it would seem prudent to look at what is available considering the above points and other factors.
While there is probably no such thing as a sure-fire investment, there are some that have proven themselves to be far more reliable than others. With such a clear track record of success and the current demand for homes, property must be considered one best options for a long-term investor. That said, it always has. So, for the potential investor looking at property there is a comfort in knowing that the more things change, the more that stay the same.
Call us and let’s talk about how we can help you find the right investment property for you.