10 Reasons why property is the perfect asset to invest in

Income | An income-producing asset which provides consistent monthly cashflow – to help pay for your liabilities. Do you believe your home is an asset or liability?

Invest for the Long Term | Benefit from appreciation and capital growth – historically as rule of thumb, the value of property doubles over a 10 year period. 

Diversification | Whilst property prices may from time to time go down, property does provide greater insulation from the more volatile fluctuations to mainstream assets such as stocks & shares. Different parts of the country also may weather any storm better than others thus offering additional protection.

Passive | Provide you with a passive income for life – investing well can mean you can do the work once and get paid for life. Health warning: some work is required.

Tangible - It has a tangible asset value – people love the fact you can feel and touch property compared to other less tangible ‘paper’ assets they can't necessarily see.

Wealth Creation | Can be passed down creating generational wealth – I love this one, and is the primary reason why I'm creating a portfolio of assets. SSAS pensions for instance, provide tax efficient vehicles for taking control of your personal economy and passing down to loved ones so they can benefit tax efficiently.

Tax | There are numerous tax and benefits savings, particularly if assets are help in limited companies or SPV’s. By owning a property in a company, the profits will be liable for Corporation Tax (at the time of writing 19%, which is approx. half that of a higher rate tax payer). If you own property in your personal name (like many existing landlords still do), the profits will be added to your other earnings (such as from full or part time employment) and therefore taxed as income.

Leverage | Property an be used as leverage to buy more property assets. Careful and clever investment enables you to recycle your money, re-finance and re-invest, growing your portfolio even more over time.

Demand | People will always need places to live and a roof over their head. The UK population will continue to grow and people are living for longer, which will lead to continued pressure on land and housing stock. Existing run-down and empty properties can be re-developed to help provide much needed homes.

Innovation – the property sector is a great sector to be involved in, and is continuously evolving. Innovations in PropTech for instance will challenge the traditional ways of thinking and doing business, and will open up new opportunities for investors.

Investment in any asset class comes with pros and cons, and property is no different.The key is to get educated to minimise the risks and work with a team and network of professionals who can help you make the right decisions to help you achieve your objectives.

Happy Investing and Good Luck!

(Disclaimer: This article does not constitute financial advice. The value of any investment may go up or down. Always seek professional advice.)