Investing to beat inflation: How to invest your cash to stay ahead of rising prices

Investing to beat inflation is an essential part of financial planning. Inflation can erode the value of your money, making it challenging to maintain your purchasing power. Fortunately, a range of options for investing your cash can help you stay ahead of rising prices.

This blog post will explore how to invest your cash to keep up with inflation, including cash property investments, off-plan property investments, and alternative assets such as student accommodation.

The importance of beating inflation

Inflation is the price rise of goods and services in an economy over time.

As prices increase, the same amount of money buys less and less. This means that if you have a fixed amount of money, you won’t be able to purchase as much as you used to with it. Inflation is usually expressed as an annual rate calculated by comparing the average price of goods and services during a certain period to the average price during a prior period.

Investing is an important way to protect your money from the effects of inflation. By investing, you can ensure that your money grows over time, despite the rise in prices. For example, investing in stable assets such as property and alternative real estate assets can also provide a hedge against inflation.

When it comes to investing, it’s essential to focus on finding stable investments that don’t have the same volatility as stocks and shares.

Property investments such as Buy-to-Let and off-plan properties are good options for long-term stability and solid returns. Alternative investments, such as student accommodation, can also be great options for investors looking for diversification and solid returns.

Investors need to remember that saving all of their money may not be enough to protect them from the effects of inflation. Investing is the key to staying ahead of rising prices and ensuring that your money continues to grow over time. By focusing on stable investments such as property and alternative assets, investors can gain the assurance they need to beat inflation and enjoy long-term success.

How to invest your cash

When investing your cash, there are several options available to you. In general, it is best to choose an investment that will provide a return that is higher than inflation. Here are some of the most popular types of investments:

1. Property Investments?– Investing in bricks and mortar can provide a solid return on investment. With cash investments, you can purchase properties outright, meaning you won’t need to secure a mortgage during rising interest rates. Property investments, by nature, are a good choice for investors who want to ensure a monthly rental return and capital gains over the long term.
2. Alternatively, off-plan property investments provide higher returns but require more research to ensure you purchase through a reputable developer.
3. Alternative Assets?– Alternative assets such as Student Accommodation (PBSA) and?Staycation Lodges?provide higher yields than traditional investments and can be held for more extended periods. A fully managed alternative asset is a great way to diversify your portfolio without managing the property on a daily basis.

Whatever option you choose, it is important to research before making any decisions. It is also essential to diversify your portfolio, as this can help mitigate risk and increase the potential for returns. When investing your cash, it is always a good idea to establish your financial goals first and choose an investment option to help you reach them.

Off-plan property investment

Off-plan property investments are typically sold at a reduced market rate to attract early investors. What’s more, they generally require payment throughout construction, which helps to spread the cost of investing.

Moreover, developers often provide rental assurances, ensuring a steady income from the outset, and many offers come with fully managed solutions that take the hassle out of renting out the property once it is completed.

Finally, most new builds come with warranties that give you peace of mind about the quality of the construction and the materials used, making the upfront cost of investing in an off-plan property more attractive.

Overall, off-plan property investments are an ideal way to get into the property market while taking advantage of discounts and payment plans to make the most of your money today.

Student accommodation

When considering investing in student accommodation, it is important to research the options available and look for properties with high demand and more than one university nearby. This will give you a better chance of achieving higher returns. Furthermore, when researching potential investments, consider the potential for future rental growth and look for well-located developments that offer the latest amenities.

For those considering alternative ways to invest their cash, investing in student accommodation can be a great option to help beat inflation, as long as you do your research and take into account the various factors discussed above.

Get expert advice

Fabrik Invest is a leading UK property consultancy with an excellent star rating on?Trustpilot. We have helped investors from all over the world to invest in income-generating properties that deliver a robust return on investment.

If you want to explore your options and discuss potential ways to invest your money,?contact Fabrik Invest?to book a 1:1 discovery call.