Capital Growth or Income Yield
When considering stocks and shares, gold and silver, or other commodities the amount of available cash you have together with your age dictates what you will choose as the best strategy for improving your financial situation.
If you have time on your side to generate a passive income then growth is possibly a good strategy. On the other hand, if you have only a few years to retirement, urgency rules, and your money is best made to work harder with a focus on assets that will generate a steady income. Less time however, generally demands higher risk!
Yet one investment has proved time and time again that it is immensely robust over the medium (10-15 years) to long-term (15-yrs+). One investment can be purchased with the bulk of someone else’s money (mortgage) with operating costs paid by some else (tenant), producing excess profit (net rent).
It is immovable so no one can run-off with it and real, so you can see it and feel it! It is known to and wanted by everyone so it’s not a fad! It can be left within an estate following death with any debt, so reducing tax upon it.
That investment is property!
If someone has the experience and the time to monitor the volatility of the share market or has the faith in another to do so, then stocks, gold etc can present an opportunity for some part of ones investments.
Property however, requires no such external expertise. After all, you probably live in one already so understand what is needed to maintain your ‘investment’.
For just £14,000 you can buy a property worth £75,000. This just isn’t possible with precious metals, stocks and shares!
This is the right time to invest
There is a reason why now might be the optimum time to dabble in the housing market – mortgage rates are at a seven-year low.
You can avoid a nasty rise in your mortgage repayments when interest rates do rise by choosing a fixed-rate home loan. Although these mortgages tend to be more expensive than variable-rate trackers, you can pay less than 4pc for two-year fixes, while those who want certainty for longer could fix for 10 years at 4.99pc from Yorkshire Building Society, although you would need a 25pc deposit.
House price bears reckon that many homeowners could not cope with a rise in interest rates. Some, they say, are able to keep their heads above water today only because they are paying rock-bottom interest rates – as low as 2.5pc, in some cases. But these borrowers are fully exposed to a rise in Bank Rate; while remortgaging to a fix will see their repayments rise immediately. A tick up in repossessions cannot be ruled out.
For now, the housing and mortgage markets are in as good health as they have been since the credit crunch took hold, but the outlook looks decidedly grim.
Someone with access to funding who could cope with a rise in interest rates might be able to grab a bargain by choosing the area and property type carefully. Existing homeowners whose finances are stretched to the limit might equally take the opportunity provided by the current resilience in prices to get out of the market before prices fall.
By Richard Evans – The Telegraph
Why Property Can Work for you…
We all know the current situation. The economy is in a slow recovery thanks to Brexit and is set to continue for the following years. Interest rates are historically low and this means that money saved in banks, ISAs and bonds are not performing the way we had hoped. In the meantime property prices historically increase, as they have done consistently over the last 100 years, outpacing the rest of the market. Everyone has heard the saying “as safe as houses” and the industry follows a reliable growth pattern, with statistics detailing how prices double every 10 years.
As with all things, the more care & attention an entity receives, the better it will perform. In the same way, a property investment that is purchased below-market-value, refurbished to the high standard by an educated developer, professionally managed & has it’s financial details analysed, will perform better than one that idly sits by.
By simply providing the tools to make your investments in property as profitable as possible, we can provide a platform for both new and experienced investors to realise great returns, and put more income, passive income, into your pocket. From finding the right discounted-property-investment, to building your portfolio, educating you in property, and even the finer details such as saving you money on utility bills, Aspire can nurture & grow your business to new levels.
Property investment is a clear strategy for capital growth in the mid-long tem; it is a great way to earn a passive income and a great way to build on your investment portfolio. At Auxilium Homes, we can make this happen so do get in touch and take the next step.