Why Invest in Property?

Investing in property is not a new concept, it has long been a popular way to build wealth and generate income. But amid all the doom and gloom presented in the press about rising interest rates and property values decreasing, the lay-person could be forgiven for thinking that now is a bad time to consider investing in a property, however this isn't the case, and for many, now is the BEST time to invest in property.

This guide is going to show you how property investing in 2023 is actually poised to be a very lucrative venture, but firstly it's important to understand the reasons why people invest in property and make sure it's right for you.

First and foremost, property is considered a stable and reliable investment option. Unlike stocks or other investments that can be highly volatile, property values tend to appreciate over time, providing a solid return on investment, this is known as capital appreciation

In addition, property investments can generate ongoing income through rental yields, making it a popular choice for those looking to generate passive income streams.

With demand for rental properties expected to remain strong in 2023 and beyond, the potential for steady rental income is high.

Another benefit of investing in property is the potential tax advantages. Property investors can claim a variety of tax deductions related to property expenses, including interest on loans, repairs, and maintenance costs.

Furthermore, property is a tangible asset that can be leveraged to access finance for other investments or business ventures. This means that investing in property can provide a stepping stone to building a more diverse investment portfolio.

Finally, tied into the initial point on capital appreciation, investing in property provides the potential for long-term wealth creation. By holding onto properties for several years and allowing them to appreciate in value, investors can build significant wealth over time.

Overall, there are many compelling reasons to invest in property. From stable returns and ongoing income to tax advantages and long-term wealth creation, property investing is a solid investment strategy that can provide financial benefits for years to come, whether it's to add to your current income, to replace your current income stream or as a pension scheme.

How to Get Started

If you're interested in making profitable property investments in 2023, the first step is to understand your investment goals and objectives

What returns are you looking for? Have you taken tax into account? How diversified are your investments? How much involvement do you want to have?

Once you have a clear idea of what you want to achieve, you can start exploring the different types of property investments available to you.

Investors looking for long term goals may want to consider standard buy-to-let properties whereas those wanting quicker higher returns may consider short-term lets, or holiday lets, and depending on tenant demand in their chosen location another option for high returns is student housing and the growing market for purpose-built student accommodation (PBSA). Other options include property sourcing, flipping, auctions and property funds.

When it comes to selecting the best investments, it's important to do your research. This might involve working with investment agents or managing agents who can provide insight into local market trends and potential returns. It's also worth keeping an eye on inflation, which is proving a worldwide challenge, but particularly sticky in the UK.

Ultimately, the best way to get started is to take a structured and disciplined approach to property investing.

Multi-asset investors should consider including property as part of a diversified portfolio, while individual investors should aim to select assets that align with their specific goals and risk appetite.

By carefully assessing your options and seeking professional advice where necessary, you can build a property portfolio that generates significant returns over the long term.