A few years ago, it seemed like property was the fast-track to wealth for many novice investors, with the buy-to-let route in particular being heralded as the ultimate golden goose. Property investing even broke free of the specialists and investor circles, invading popular culture in the form of magazines, blogs, books, and tv shows.
But in recent years, investing in property seems to have lost some of its appeal, both to investors and the general public. This is partly due to Government legislation that reduced those lucrative returns for buy-to-let landlords. There have also been some demographic changes that affect the demand for housing, as well as issues that have ripple effects on the supply. And of course, there’s also the undeniable impact that Brexit uncertainty has had on the nation’s housing market as a whole.
So, is property still a sound investment? And is it sensible, or even possible, to build a viable business on the shifting ground of the property market?
These questions are front of mind for investors at all levels, and it’s precisely why property experts like RJG Properties exist – to provide deeper insights into the rapidly-changing conditions of the UK property market.
However, despite the short-term trends and fluctuations, property is holding strong as one of the more reliable and profitable investments, over time. So, if your business is more about the bigger picture and less about quick-wins and fast profits, there are still valuable opportunities to create and enjoy success with a property-investing business.
Of course, any type of investing will always require extensive due diligence, in addition to a new degree of caution and reserve that has become more relevant in the last decade. Also, given that it sometimes takes the longer-term value trends to cancel out the short-term hiccups, patience is an advantage.
But if you approach property investing with up-to-date information, the right support and training, alongside a realistic business model, it can still be a viable and even very lucrative business opportunity.
Though the criteria for success may have altered in the last decade, people are still moving home, buying their first home or investing in buy-to-let properties. So a business that meets these demands is still a viable opportunity, whether it specialises in development and ‘flipping’ or buy to let properties.
And despite the doom-mongers, property remains one of the best places to house your money. A recent article on Propertywire shows how a decade-long investment in property would have yielded a 92% return (through capital gains and rental increases), whereas the ROI for cash would be a mere 16%.
So, despite its fall from favour in the mainstream media, property still does, and likely always will, offer the potential to grow your money. Whilst it may not be quite as profitable or accessible as it was a few years ago, as long as people need homes to live in, the property market will hold its own on some level, even if these levels fluctuate considerably in the short term.
Author – Matt Kirkman