The “old guard” will always tell an investor just starting out on his journey, diversity is key, know the risks, have clear goals in mind, and investing in property is a cornerstone of any investment portfolio. Many investors could look at the returns property achieves and feel a little underwhelmed, whilst property does not come with the promise of high double digit returns that other investments may – like the stock market, it does come with considerable less risk and downsides “it’s as safe as house” as they say.
If you are thinking ahead and looking long term, study after study has produced the statistics to prove that property is the best financial vehicle by which to grow your capital.
Data recently published by Heathstone Investments shows that, over the course of one year, returns on property investment are outperformed by those in equities (7% and 12% respectively) – the story is a different one over the longer-term.
Over 10 years, investments in property and equities both return around 8%, while over 15 years, property investments return nearly 12%, while equities return less than 8%.
The investment vehicle of choice of many UK property investors is the time and tested buy-to-let sector, with an estimated two million buy-to-let investors in the UK, home to more than five million people.
With the recent changes to tax relief and increases in stamp duty increasing numbers of property investors are now looking at the other avenues – luxury property.
Data from Christies International Real Estate tells of a market at record levels with the world’s top ten reported property sales all priced above $100 million for the first time.
Unlike traditional property investments luxury investments often require more initial capital, larger investment means greater returns, it also means more exposure, hence more risk.
Eddie Sikora, Director, the Luxury Property Show, said: ‘The luxury property market is growing exponentially at the moment with an unprecedented number of sales topping the $100 million mark. As the old adage goes however, early bird catches the worm, and now really is the time for those thinking about investing in this market to take the plunge.
For property investment details, please visit DevDosh Ltd today.