A parent’s favourite past-time is to tell their children to invest in real-estate. Many invest in real estate because it is one of the most celebrated, timeless investments. A property’s value is almost always bound to increase (especially in bustling cities such as London and Manchester) – just as land plots steadily increase in value.
However, it is important to pick the right properties. Not every property will guarantee returns, but there are factors that can almost assure you that this property will remain valuable in 10 or even 80 years’ time.
How to pick a good property? Location. Simply put, a property’s location can mean a good deal or a terrible deal. If you are considering investing in a splendid property neighbouring a slum, stop. If you are considering investing in a refurbished property, or a property sitting in an area with conversion plans, or that’s located nearby important roads, then do continue.
A stable economy has real estate as its cement. In the case of the UK (one of the most stable economies worldwide) real estate plays a central role, having a market value of £1,662 billion, contributing £94bn sterling pounds to the economy, which is 5.4% of the country’s GDP.
Real estate employs millions worldwide, and over 1 million in the UK.
Unlike other types of investments, such as crypto-currencies, properties are actually tangible – therefore, they make up one of the most valuable asset classes, being something people can touch, see, reside in, and make a home.
People will always need a place to live, and the population is steadily increasing worldwide. The World Bank figures state that the world population was 3 billion in the 1960s, and has more than doubled to almost 7.5 billion today.
Investors should always choose the asset-class that best suits their needs. This is why real estate is such a buzz-term: because it works, and there is a niche for every investor. Buy-to-let property is by far the most famous investment type, alongside student property and airport parking. Even carehomes are a guaranteed investment in some parts of the UK.
The reason real estate UK attracts many investors is that many of these properties are guaranteed, with fixed returns of up to 12%. Some even start with just 25,000 sterling pounds.
Real estate investment is a timeless truth.
If you want to learn more on why real estate is such a recognized and well-established form of investment, follow our blog or read more here.