Investors looking to UK Property Market
By John Heaton 06 October 2020
UK Property has always been a resilient market. There have been world events lately that have called into question how people would be best to invest, with stock markets taking a hit worldwide. Without tangible assets people are looking more to property and investors are reaping the rewards in these times with the right investment.
Property: The 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. Having a tangible asset is a far greater advantage than having a stock or share that exists in theory.
Capital growth is an area of interest for all investors. They look to invest in areas that are on the rise. At the Heaton Group our developments are all focused in such areas like Preston, Bolton and Manchester to name a few. We see that these areas, receiving significant investment from local authorities have had property values and rents increase. As such – they present attractive options for investors.
Continuous income for investors
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 months due to COVID-19. There are now measures announced by the UK government to alleviate the potential impact this could have on the property market such as the Stamp Duty removal up to £500,000 (investors will still pay the flat 3% but can make significant savings still) and the continuation of local development projects.
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 of the asset
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. Bolton is part of a scheme where the town centre is undergoing a £200milion pound regeneration scheme. Preston - £400million and Manchester has seen continuous growth to the point developers can no longer keep up with demand and are looking further afield.
The funding of an investment project is important too - The Heaton Group developments are all fully funded prior to development, meaning that they will complete regardless of sales. We do select properties within to retain in our portfolio too, allowing for a continuous income from renters of our own!
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.
Right now, property is a safe way of ensuring a financial future. Seen as safer than global stock markets. We are speaking to investors all over the world and finding that global uncertainty is causing a movement in funds out of stocks and into property.
To speak to our team about your investment then call us on 01942 251945 or email us on info@heatongroup.co.uk