Why UK Property is retaining its attractiveness to investors

There’s been some difficult news around the world in recent weeks, with financial markets across the world taking a substantial hit. Property remains more resilient due to the physical nature of the asset existing in the real world and not digitally like stocks and shares.

Universal economy

Used by businesses and individuals across the world, property has long been where investors have placed their trust. It’s regarded as one of the safest investments around due to the high demand in rental. This ensures investors have a consistent “passive” income through property while their asset increases in value.

Image of a businessman workplace with papers

Capital growth is likely to slow in the coming weeks and months; this is an inevitable side effect of the current economic climate we’re enduring. There will, however, be a recovery period in which demand will soar. Every delayed decision will mount up and eventually there will be a rush in secure sectors such as property.

Continuous income

Investors always want to place their money in something that will provide a positive return. Speculating in the stock market can be a hazardous affair – especially given the volatility that we’ve seen in recent weeks due to COVID-19. While there are now measures announced by the UK government to alleviate the potential impact this could have on the property market. Ultimately, you’re not going to lose out long term by investing in property.

Happy woman saving money in a piggybank

The continuous flow of income is welcome for investors too. It allows for better financial planning and the ability to improve and diversify a portfolio when there’s a guaranteed income. Stocks and shares often require much more attention. While there are investors who like to be more hands-on, those who want to see a consistent monthly income often defer the management to an in-house letting agent.

Physical existence

Property exists in the real world. It isn’t a group of numbers and arrows and graphs. Investors like that. They want to feel like they own something they could see and feel if necessary. The places where they are also have thriving communities and economies. In the North West, for example, there are numerous regeneration projects in major towns and cities and investors can feel like they’re part of that growth.

Looking up at apartment buildings in Boston, Massachusetts.

This also means that if there are ever any issues, they could sell up and move on. It never gets truly wiped out. If a share drops in value, it can become next to worthless. Property doesn’t work like that. There’s a whole area where it exists. It’s also less volatile. Shares can be wiped out overnight. Property takes some time to react to global events.

Summary

Right now, property is a safe way of ensuring a financial future. Much safer than global stock markets. Given the uncertainty of COVID-19 on the world's economy, if you’re considering making a financial decision, making that sooner will help avoid the inevitable surge in demand during the recovery period.

To speak to us about your next property investment opportunity, please contact us on 01942 251 945 or email on info@heatongroup.co.uk.

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