Does property investment depreciate?
Does property investment depreciate?
One of the most searched topics on google this week, is does property investment depreciate. The real answer here is…completely depends on what you are doing in the property world. There are so many routes in property, however simply put property value in the UK has taken at its longest 14 years to double in equity value.
Meaning if you are investing in property over the medium to long term it is extremely likely you will lose money (if invested correctly up front).
Why invest in property?
- Stable investment – There is far less volatility in the UK property market compared to any other type of investment
- Passive income – Rental income through buy-to-lets, holiday lets, SA or HMO generate consistent monthly income
- Capital growth – In the last ten years property values have grown by 71%. This is on top of rental income
- Diversify – Diversification of your investment portfolio is important irrelevant of net worth
- Sexy asset – It’s a physical asset that is relatively easy to understand. Property is tangible
- Increased income in uncertain times – Typically rental values never drop, and in times of crisis they tend to increase. This is where investors hold on to their assets.
What to consider before investing
- What type of investment property is right for you. This will then dictate what area you invest in and what type of property
- Understand the expenses involved prior to starting
- Know the legalities
- Consider if you have time, maybe you need someone to do it for you
- Insurances needed
Final point
Property investment for me is an absolute no-brainer if you can get into this world. The problem is I see far too many people getting into property without any real understanding or education. Its ok not to know all the answers, therefore go and learn. There are so many educational points in property and also finding a mentor to help you erase the mistakes they made prior.
Lastly…Take massive action
