How Property Investment Can Benefit You
When thinking about investing in property, are you sure you have really considered all the benefits it can provide, both financially and mentally? Some may look at property investing and think it is an arduous process that can take too long to realise the advantages fully. Others may overestimate the difficulty which it takes to become a successful property investor.
We are not saying it is easy to get into the industry, but it is not impossible to do so either. There are plenty of free educational resources accessible for all property investors and developers, both up-and-coming and experienced. And, with a bit of guidance and support, you will be able to indulge in all the benefits that property investing can provide.
Read on to find out more about the benefits of property investments and property developments.
Is it worth investing in property?
Property has long been recognised as a good and successful long-term investment. From passive incomes and capital growth, property offers many benefits; it can even enhance your work/life balance. With the current market conditions and the property market’s proven track record of weathering financial storms, investing in bricks and mortar is a great way to make your money work for you.
As with any investment, it is crucial to find the right property investment strategy for your situation. Depending on how much money you are able to invest initially, along with the amount of time and dedication you are willing to put in, your property investment journey will vary. However, one thing that will remain the same is the benefits that you can attain.
In terms of how to get started, read our previous blog on the steps you need to take to start climbing the property ladder and how best to determine your strategy. The key to finding this ‘worth’ is to ask yourself how committed you can be to the cause. Are you willing to set aside time to educate yourself on different property investments? Do you see yourself continuing down this path in the next five to ten years and beyond? Property investment can be a life-long commitment, so this is something that needs critical thinking.
If you have other commitments in your life and are restricted with your time, this does not mean the benefits of property investing are unattainable. They are, instead, achieved through alternative, more hands-off strategies, such as crowdfunding, developer loan notes, externally managed buy-to-lets or even REITs. There is always a way to invest in property passively, and, arguably, the passive nature of these strategies is a benefit in itself.
Our general advice on deciding which property investment suits you is to ask fellow property investors and developers. There is no better advice than from people who have been there and done it themselves! The experts here at Property Summits are prime examples; their anecdotes and personal experience achieving their success can help you pave your way. Register here for updates on our next live event by visiting our website home page.
The best way to fully understand the worth of property investment is to get the broadest range of opinions from different types of property investment experts. Some may offer insightful stories which could inspire you to take that next step, whilst others could offer their own individual tips on what is best to do next. Either way, it is helpful to see if any advice can help you with any burning questions or something possibly holding you back.
The Benefits of Property Investment
There is a multitude of benefits that can really help with your financial situation and mental well-being in terms of benefits. If done right, property investment can bring a wealth of positivity into your life, improving day-to-day activities in more ways than one. It is important to note that this is not a complete list of benefits, so you may even experience others not mentioned by us.
A career you love
First and foremost, if you have set your sights on property investment, you can make what some may see as a hobby a full-time career with enough due diligence and effort. As the old Mark Twain quote goes, “Find a job you enjoy doing, and you will never have to work a day in your life.” This is something we can relate to and holds up within the property investment industry. By doing something you love, you will feel less stressed, improving your mental health and well-being. Stress only creates more problems, so doing something you enjoy will be beneficial in the long run.
Be your own boss
Have you ever imagined what it would be like to be your own boss? Well, when you are investing in property investment, you are your own boss. Being a property investor allows you to control your work/life balance, enabling you to sort out what you need to do weekly regarding any properties you own and enjoy more time with your family. Not only that, but you can form positive working habits and learn on the go as you do not have to rely on colleagues/employers to set your tasks.
Set yourself up for life
Getting into property investment can set you up for life financially. If you have ever worried about how you will fare when it comes to retirement, then the property industry is a viable option. It can not only set you up, but it can also play an essential role in the futures of your children and grandchildren, who could put the built-up finances to good use. Property investment is also something you can introduce to your children when it is time to do so, passing the skills you have learnt throughout your career and help them become independent.
Investing in property is one of the best ways to guarantee your financial security in the future. Rather than being a way to ‘get rich quick,’ property is instead a long-term investment plan, with larger return on investments needing longer timescales. However, certain strategies can provide you with a passive income on the side.
By using Buy-to-Let, Build-to-Rent, HMO and Holiday Home investment strategies, you can not only secure money for your future within the physical assets; but also benefit from the passive income which is created from rental fees and rates. And, you can make your strategy as hands-on or hands-off as you like! Suppose you are unable to invest your time into managing your property’s tenancies or bookings. In that case, you can always outsource to a management company or opt for a lettings agent to take the reigns.
Lettings agents can prove a great ally in such a competitive market. We would always recommend you complete your due diligence and develop an understanding of the task at hand; however, working with an agent who knows and understands your market can only go in your favour.
As your property portfolio grows, you may also feel the need to turn your property investments into your own property business. By building up a trusted team of professionals around you, you will be able to expand your portfolio and outsource certain tasks, allowing you to manage your time better.
In addition to a passive income, owning a property also allows you to achieve capital growth with your asset. Over time property prices inflate, and depending on where your property is located and the renovations you carry out, the percentage increase can be significant. To achieve maximum growth from the purchase price to a property’s current value, we recommend taking the following into consideration: location, target market, the current property market and professional advice.
Investors who have a lower risk tolerance will naturally favour property investment strategies that have the potential to provide a steady stream of income, favouring passive income; whereas, those who can afford to take more risk will look for ways to gain maximum capital growth. It is worth noting that any property you own will achieve some amount of capital growth, even if you are favouring passive income.
The overall number of benefits of property investing far outweigh the five points listed above. For newcomers and hopefuls looking for advice, stay up to date with our seasoned property experts and commentators at Property Summits. We have discussions and podcasts to help you get a well-rounded view of the latest news in the property market, as well as mentoring options and consultations from successful property investors and property commentators. They are all on hand to offer advice on their social media channels, personal websites and YouTube channels.
We recommend seeking independent financial advice and carrying out your own thorough due diligence to your unique situation before going ahead with any investment option you may be considering.