Is Property a Good Investment?
Is property a good investment? We believe it’s one of the best investments you can make and very achievable for everyone. In this article, we explain the reasoning behind thinking this.
According to the Sunday Times Rich List, 40% of people on that list created their wealth through property, and the remaining 60% invested in property as a means of growing and protecting the wealth that they previously created.
It is common and proven knowledge that investing in property is by far the most risk-averse, hands-off, and financially rewarding option to create both an income stream and to achieve capital growth.
Two Main Ways of Generating Income
When investing in property there are normally two main ways of generating income:
Rental yield – what your tenants pay you for rent, take away any maintenance and running costs, like repairs and agent fees.
Capital appreciation – the profit you make if you sell your property for more than you paid for it.
Why Property Is a Good Investment
Here are some points as to why we believe property investment is a good investment:
Little skills required – As mentioned above we believe everyone can get into property investment to some extent. However, there are certain property investment strategies that do require more knowledge and experience than others. Make sure you carry out fine due diligence before investing and make calculated moves.
Risk-averse – Like all investment opportunities there’s always an element of risk involved, but in our eyes property is definitely the most risk-averse of the bunch. Each year property prices normally tend to rise and very rarely fall meaning it’s a relatively safe investment.
Hands-off – property can be as hands-off as you want it to be. Many people decided to have their property managed by letting agents and trust them to deal with the letting process as well as issues that occur on a day-to-day basis. A lot of the time hands-off investors have other projects they work on, so they simply don’t have the time to manage their property themselves. Letting agents tend to have different levels of management available so you can decide how involved in the process you’d like to be.
Earn passive income – make money while you sleep, what’s not to love about that? Passive income means you make money without having to do any work, and YES that’s correct you can achieve this through property. One of the most popular ways to generate passive income in property is through rental yield.
Financial freedom – If you are someone that’s willing to put in the work and build a property portfolio there is a good chance you can achieve financial freedom. This might sound cliche but property really can present this opportunity. Having multiple properties all generating rental income can amount to enough money for you to quit your 9 to 5 and reclaim the freedom to spend time doing more of what you want and love.
So there we have it, how could you not think property is a good investment? History doesn’t lie and the proof is there that many people have become successful through property investment and many people continue to do so. If property was a bad investment there wouldn’t be as many people doing it as there are.
Let us know in the comments below if you think property is a good investment plus your reasons for investing.