Why should I invest in property? [Audio]

Another question I get asked frequently is ‘why should I invest in property?’ This one is very simple to cover.

At present, the economy is dipping in and out of recession so a lot of people are nervous about investing in property and want to know if it’s a feasible investment. It’s especially difficult as there are so many negative stories in the press about prices dropping and painting a picture of a very bleak economic outlook.

House prices are cyclical and over the last few years, property prices have fallen, but they have stabilized over the last few two to three years in many places. Regardless of this, if you were to look at a graph of house prices over the last 10, 20, 30 or even 40 years during which time we have been in recession before, you will see that prices have risen despite the dips.

I believe that now is a good time to invest, but putting aside the financial gain that property can give you, let’s look at the fact that property gives you control. Property allows you choose how much to invest, where to invest and you can make property earn money for you. Property offers more stable returns than the stock market, as it the investment will never drop to zero. However, with the stock market companies can merge, have crises, change ownership and so on, and shares can drop right down to being worthless. Housing is tangible, and you can keep as much control as you wish. Many people have investments elsewhere with no control, something that never happens with property.

When it comes to property you can also invest for cash flow offering you an income in the short term, something you can’t do with other investments. My rule of thought is that with property, whatever happens in terms of value (up or down) is irrelevant because if you are getting an income each month then you can live off that and use it to enhance your quality of life.

In addition, property enables you to add value all the time – there are so many things you can do to property to improve its value. This includes extending to add more rooms or a convert your loft into rooms, refurbish your home adding features or a more desirable finish for improved resale or rental value, update the kitchen or bathroom, landscape the garden – the possibilities are endless. With shares, you can’t add value to these yourself it’s simply a waiting game that isn’t within your control.

Another thing to consider is that when you are investing in property it can create an alternative investment asset for your pension pot. Many traditional pension funds mean that you are relying on the stock market but property allows you to diversify your pension with a different asset class. Shares in company A, B or C are always at risk but property is different. Investing today is a good time to as 1, you will get income if you invest wisely, 2, you can add value and get control and 3, (this is critical), you can leverage other people’s money to secure your own income.

With property you can leverage the banks money. Banks see property as a secure investment and if you go to a lender saying I have X and you give me Y they will give you the money you need allowing you to essentially make a profit on their money. In addition, if the cash flow you can generate is larger than your repayments, then you are in pocket from the off.

So to sum up, investing in property allows you to leverage the bank’s money, it offers you stability, flexibility and control – and you can always add value to a property.

To find out more about property as an investment strategy to help you now and in retirement, talk to me Gill Alton at Alton Property Partners.

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

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