July 11, 2017

Why Property

It is a well-known fact that, over the long term, no other investment vehicle offers the same benefits as investing in property when it comes to building a solid base for your personal wealth – and there couldn’t be a better time to invest in property than right now. Property is safer and less risky than the equities market

Since 2000, the UK property market has outperformed the equities market by quite a significant level. For each £100,000 invested in the property market, a 132% return has been generated in comparison to an 83% return from the stock market.

However, the 83% return from the equities market has relied on the dividends being reinvested and let’s not forget that this 83% return has been generated by the FTSE 100 – many investors wouldn’t have invested in each and every one of the shares that performed well. The bottom line is that the equities market is far more speculative and the habit that investors have of buying the wrong shares at the wrong time, selling low or too early or holding on for a profit that is never reached adds to the volatility of buying shares.

With the average ISA rate falling to a measly 1.02%, many smart investors are turning to bricks and mortar in order to make money in a safe, stable and asset backed market. The UK population has increased by 7% in the past ten years and is predicted to continue to reach a staggering 70 million by 2027. As the most heavily populated country in Europe, Britain is home to a hugely diverse range of people with one thing in common- we all need somewhere to call home. With housing supplies currently unable to meet these increasing demands (the lowest supply for 100 years) it’s easy to see why Investing in property is now one of the most popular areas for people looking to put their cash to work.

And it’s not just about buying houses, either. Those in the know are converting commercial properties into HMOs and buying land to develop commercial dwellings- both highly lucrative and exciting opportunities for investment.

As they say, hindsight is a wonderful thing, so why not ask your parents (or even better, grandparents!) how much they paid for the family home, how much it’s worth now – and given the chance to do it all again, would they have bought more? Wouldn’t it be great if years from now, you’re telling your grandchildren how you achieved financial freedom? Working in partnership with EPG can make this dream a reality, and we’d love it if you’d join us on our journey.

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