Taking a leap into property investment – what you should keep in mind…

Most people have a general grasp of property investment and how the process works. This naturally comes through experience of renting or buying their own home. Through the rising digital age, choosing to rent out properties through the likes of Airbnb is becoming more and more prevalent worldwide. In a way, it is ironic that some everyday investors rule out property investments as an option and look to the likes of stocks and bonds to source their returns. Property is on its way up, and it is staying there for the long haul.

The principles of property investment are straightforward, and the positives far outweigh any slight hiccups that may be experienced along the way, although this will be minimal. One of the most appealing aspects of property is a regular income. Quite frankly, property is the only asset that has the potential of producing two different types of returns: capital appreciation and rental yields. Rental yields on residential or student property are significantly higher than those available from bond and equity markets, not to mention that the income from property investments is stable and consistent, making it an extremely enticing asset in a period when the stock market volatility is rising.

Steady returns from property are to be expected, with returns as high as 11.79% found in certain postcodes in Liverpool. This suggest how prosperous the area has become due to a multitude of factors. Stocks and bonds can be sold in a matter of minutes while selling property can take much longer as there are so many processes involved, particularly if you are tied into a chain. However, with this being said, the lack of liquidity can actually be an advantage for property investors as it protects the chance of panic selling, leading to diminished returns through rushed decisions.

The financial market experiences peaks and troughs and can seem turbulent from time to time. Property investment evolves and adapts to change with the economy, and remains resilient as it delivers steady, incremental growth. Tenants can naturally expect to pay higher rents in accordance to periods when wages and incomes are rising.

The tangibility of property also provides a level of financial security. If the market experiences any slight downturns like any other asset market, these downturns are severely limited as land and building is a finite commodity that will always hold value. In contrast, a share could lose all value in one go. If a company goes under, then your money is worthless. Therefore, property provides a whole degree of security that another asset just cannot match.

The property market offers diversification benefits as there is plenty of scope to source different types of housing. From student, to residential, to commercial, there is something for everyone. RW Invest, property specialists based in Liverpool, offer a diverse range of properties guaranteed to produce solid returns, with properties across Liverpool and Manchester assuring 9% for up to two years. The property market therefore looks extremely prosperous over the forthcoming years.



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