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With the worry of pension and job security, it has never been more important to plan for a secure financial future. We believe that the best way to do this is to build a diversified portfolio of assets and that portfolio must include property.
Why Invest in Property? The property business is a financially rewarding and exciting business and returns on a UK property investment will, and has, outperformed returns on stocks over the last 20 years and with far lower volatility and showed none of the risk associated with traditional investment vehicles. In recent years we have seen stock market prices fall and pension funds obliterated. In comparison, property has continued to rise in value. In fact, property prices in the UK have risen by a staggering 138% since 1995!
It's no wonder many people have invested in property as an alternative to a pension. A UK property investment can produce a consistent income, even once you have retired - historically, property has roughly doubled in value every eight years or so. Furthermore, the value of property is driven by supply and demand. In essence, the greater the demand for any given supply, the higher prices will be. In the UK, there is currently a fundamental shortage of housing. No wonder property investment is now seen as the best way to provide long-term financial security.
The figures speak for themselves. The government's own estimates suggest that approximately 230,000 new homes are needed every year but that only 160,000 new homes are actually being built. If this imbalance continues, there will be a shortfall of more than 1 million homes in the next 20 years. More demand, and less supply, can mean only one thing over the medium to long term - house prices will rise. Even though there will be short term fluctuations, the future trend is clear.
To be a successful property investor you must be armed with clear and effective investment strategies. When to buy? Where to buy? When to sell? How to finance your portfolio? How to buy below market value? What are the risks and how can I manage them? The best way of ensuring that you don't succumb to many of the pitfalls that await new, and experienced investors, is to find yourself a property finder who applies common sense and has the vision and connections to find exactly what you're looking for. What you need to remember is that property finders can be found everywhere - good and knowledgeable property finders need to be searched for and cherished when you get the one that's right for you.
But it's not just a UK property investment that could see you reaping are reaping the benefits. Spain has been another focus of property bargain hunters with many builders finding themselves in financial difficulty, many about to go into administration. On one block of executive apartments nestling on the marina in Sotogrande, one of the most exclusive parts of the Spanish coast, investors got a 45% discount off the current market value. By looking beyond the UK, you could effectively build up enough equity to truly broaden your property horizons.
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