Bitcoin Vs. Property: Where Should You Invest YOUR Money?

Over the last few months, everyone I talk to seems to bring up Crypto currency, and more specifically the term Bitcoin. This all started last October, when all of a sudden the price of a bitcoin made a dramatic leap in value, offering any lucky investor at the time phenomenal rewards. Let’s put some numbers on this, so in Mid October 2017 the value of a bitcoin sat at $5,500. Then after a 2 month rally, the value hit just over $19,000. Fast forward another month and that same bitcoin was then worth $7,000, and today as I write this, the value sits at $9,900. I am guessing you have already realised that investing in bitcoin despite offering dramatic returns to the lucky investors that sold out at the higher prices is a risky business, and not for the faint-hearted. So why am I discussing this in a property magazine, and why are you the reader, still reading? Well, that’s easy, this is a hot topic that has captured the imagination, and is delivering outstanding returns in an era when getting a good return on your investments can be difficult. However, to achieve double-digit returns you don’t have to necessarily jump into the bitcoin market, property is still an investors favourite, and for a very good reason. 

I know you are now thinking here we go, the usual story about how property is still the best product to invest in, how easy it is to make money, and that it is a safe place to invest your hard-earned cash. Well yes it is, but there’s more to it than that. Let’s start to take a look at the interest behind the figures, in particular, the demand for property from first-time buyers driving prices up, a key component to a strong property market. According to figures published the other day by Halifax, the number of first-time buyers is nearing a peak last seen in 2006, and is just below the figure achieved in 2007 when 359,900 first time buyers came to the market. This is despite the level of deposits required almost doubling in size in the same period.

Russell Galley, Managing Director, Halifax said: “A flow of new buyers into home ownership is vital for the overall wellbeing of the UK housing market. This ten-year high in the number of first-time buyers shows continued healthy movement in this key area despite a shortage of homes and the ongoing challenge of saving enough of a deposit. “Low mortgage rates, high levels of employment and Government schemes such as Help to Buy have helped first-time buyers become a much greater segment of the market, and the recent abolition of Stamp Duty on purchases of up to £300,000 is likely to continue stimulating this growth by reducing the upfront costs associated with taking the first step on to the property ladder.”

This is all good news for a market that many have been concerned is becoming stretched, and one that first-time buyers are finding it difficult to get involved. Statistics show, that despite the latest moves the market is in rude health and is being built on firm foundations.

Again this is all good news for you the investor as there is still a property shortage in markets, now exacerbated by the number of first-time buyers growing, and with a workforce that is becoming more transient, the need for rented property in key areas remains high.

At this point you may say, well why are the government making life tougher for investors/landlords and changing rules, raising the bar for people to get involved in the BTL market? This in part is due to the realisation that the rental market is growing faster than imagined and the need to lift standards protecting both landlords and tenants alike is key for this sector if it is to flourish and grow. Again this is all good news for investors in property, and if you have done your homework and follow your business plan you should look to a very healthy future in the property sector, still a darling of the UK, not just a short-term rollercoaster ride that you will no doubt encounter if you decide to enter the crypto currency market.

If you have any questions about this article, or you would like to speak to one of our award-winning brokers for more information about earning more from your money, call us today on: 0207 183 0646. We are more than happy to help provide free, no obligation investment advice.

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