Why property investment?

Stocks, gold, crypto, watches… people invest in all kinds of things. We choose property. In this post, we’ll tell you why, after two decades, property investment is still our favourite type of investment.

If you’re considering getting into, or getting out of, property investment, this post’s for you. It’s a guide, or a reminder, of the unique benefits.

First – the elephant in the room – don’t let the news put you off

Believe it or not, the increased regulation and the media ‘doom and gloom’ actually present you with an unprecedented opportunity! There has never been a better time to enter the market, or buy more property.

Let us paint a picture

When we started buying houses, there were hardly any regulations. Any cowboy could let out a house in any condition. They can’t do that anymore. Tenants have more rights, and that’s a good thing. They should be able to feel safe in their own homes.

The regulations mean that it’s now almost impossible to self-manage your rental properties legally. Laws are being added regularly. You have to be agile enough to keep up. That’s difficult for any individual. So, many landlords who built their business around self-managing are getting out. Lots of great investments are hitting the market!

People still need houses. Demand only ever increases. As landlords exit the market, because their business strategy doesn’t allow them to compete in the changing landscape, you have the opportunity to get in.

There’s still lots of money to be made from property investment. In fact, more than ever; if everyone else leaves and you’re the last landlord standing, you get all the rent! You just need to take the modern approach. That means having a plan, a long-term outlook, and a professional property manager who will keep you compliant and competitive.

Now we’ve addressed that, here are the top three reasons why we love property investment.

Three reasons why property investment is our favourite type of investment

1. Cash flow

When you invest in property, you get the best of both worlds. You benefit from capital appreciation – in other words, the value of your property increasing over time. You also receive a regular rental income. You make money every month and you make money over time.

That’s two streams of income, from one source. And that benefit is unique to property investment.

Hire a property manager to make sure that your tenants are happy, your void periods are minimal and your legal obligations are met, and your investment keep generating money, even when you’re not actively involved.

2. Equity

As property prices increase over time – which they always do, during the course of the 18-year property cycle – the value of your assets (your properties) also increases. This means, you enjoy the benefits of owning valuable properties, and you benefit from additional equity profits along the way.

• Let’s say you purchase a property for £100,000
• Over time, as property prices rise, let’s say it appreciates to £130,000
• That’s a £30,000 increase in equity that you’ve gained, simply by owning the property

Your wealth grows, effortlessly, because the property market works in your favour.

And here’s another bonus. While your property is increasing in value over time, inflation is reducing the value of your debts. 👍

3. Acceleration

Here’s how to hit the fast-forward button on your wealth-building journey.

One of the most exciting aspects of property investment is its potential for acceleration. By leveraging one property to purchase another, and using strategic remortgaging, you can recoup your initial investment while still enjoying the returns.

You don’t need to wait years to save up for another property; you can use the equity gained from the first property, to secure financing for a second.

Then, you can repeat the process! This is how you can rapidly expand your property portfolio and multiply your investment returns.

So, there you have it

Those are our top three reasons why property investment is such an attractive choice. It offers the potential for cash flow, equity growth, and the ability to accelerate your wealth-building journey.

Make sure to avoid the pitfalls by using a modern investment strategy, with professional, ethical property management at its centre, are you’ll reap the benefits for years to come.

At Homesure Property, we can support you to develop a sound wealth-building strategy, then manage your investment over time, to ensure maximum return. We help new investors take their first steps with confidence, and we specialise in property problem-solving – supporting landlords with existing portfolios to bring them back to peak performance. No portfolio is too big.

If you’re ready to take the next step, book a free, no-obligation investment consultation.