There are a number of reasons to invest in property, due to it being a diverse long term investment in terms of location, budget and type of property. The benefits of holding real estate are well established. In an environment where interest rates are at a historical low and further opportunities to generate investment income are limited, the yield that is available alone on property investments is a crucial yet appealing factor. Property can offer both an attractive level of income relative to cash and other fixed income assets. In addition, the asset class can help to guard investors from inflation, given the potential for income growth over time. At Flambard Williams, we believe that property is a key component in any investor’s portfolio.
On average, house prices double every 10 years. In fact, in 1993 the average house price was £62,944, and as of January 2016, the average house price stands at £296,842, which is an increase of over 370%. This is at a time when we have experienced record low savings rates and a stock market which is at levels now lower than they were in 1999.
Of course with any investment, there are disadvantages; it's not a instantly realisable asset and as an investment there may be times when your property is not tenanted. However, despite this, most investors who have chosen to base the majority of their investments in the buy-to-let arena have experienced far greater and more stable gains than they would have in any other area.