Despite all the media speculation and the things you may be seeing on social media, people are still investing in property. But why? Surely it’s better to batten down the hatches and wait for this storm to pass.
It’s because they understand the 5 fundamentals of what is happening in the property market in 2023 and know that now is the opportune moment to be investing your money into property.
In today’s update, we reveal all.
1. There is never a bad time to invest in property
Since houses are a necessity and we aren’t building enough of them, demand will continue to exceed supply, causing the prices to increase OVER TIME
So, stop worrying about when the best time to buy is, get perspective and just get started!
2. Our cash is being eaten away
Abandon Cash & Buy Assets. Why? Inflation is devaluing the cash we do have making it worth less and less every day and ultimately, eroding our wealth.
But what about the high savings rates right now? Inflation is expected to come down over the next year or so, but then so too will the high savings rates, so cash is not a good asset class for long-term investment.
3. Property is a Long Term Plan
Over the last decade, with exceptionally low-interest rates, the winning strategy has been to focus on rental returns. Now, with the inflationary winds onside, the focus should turn to maximising the capital growth across your portfolio.
Price appreciation on property accounts for 60-80% of the overall return and cannot be ignored. So as long as the rent covers the expenses, a property will be a good investment over the long term
4. There are opportunities for investors who are ready to commit NOW!
Demand for properties is lower than normal and this brings forward an opportunity to negotiate better deals on purchases.
5. This opportunity isn’t going to be around for long
With mortgage rates coming down and the future looking less bleak by the day, there is a small WINDOW OF OPPORTUNITY to snap up discounted properties, before confidence returns and prices increase again.
Here’s something to think about
People are still investing in the UK property market.
People are still renting properties.
People are still buying, renovating and letting BTL properties.
Whether that be your peers, colleagues, people you follow on social media, multimillionaires, heck even billionaires. People are still investing their money into property.
There is a reason for that and we hope that today’s post has helped you see that for those of you who are looking to expand their investment portfolio, 2023 is undoubtedly a once-in-a-decade opportunity to capitalise on a turbulent market & invest your money into property.
Still not convinced?