Words by Pau Castillo
Investing in properties can be a double-edged sword. For some, many think of it as a “high risk, high reward” kind of investment. For others, it’s more on the losing end due to the continuous rise in living expenses worldwide, which makes the dream of owning a property next to impossible, let alone using it to generate income.
However, despite the varying opinions, it should also be noted that the post-pandemic era has changed many things, including how people work. The “new era” propels a demand surge for properties beyond big-city limits and seeks spacious, cost-effective dwellings conducive to working remotely. This shift not only elevates the appeal of rural and suburban locales for their lifestyle perks but also for their burgeoning investment prospects.
The trend is an opportune moment for investors – both seasoned and beginners alike – to broaden their investment horizons. The increase in demand in non-metropolitan areas promises lucrative returns, with remote working trends poised to sustain this demand.
In addition, government initiatives aimed at stimulating the real estate sector further influence property values and investment approaches. Keeping ahead of such policies is imperative for strategic investment planning.
Why property investment is still relevant in 2024
In a 2024 perspective, Liam J. Ryan, a prominent figure from Assets for Life, delineates several compelling reasons why property investment in the UK remains an attractive avenue for generating additional income streams. His insights draw upon the fundamental strengths and emerging opportunities within the UK property market, making a solid case for its investment viability.
1. Sustained economic resilience
Ryan emphasises the UK’s ongoing economic resilience as a cornerstone for property investment. Despite global uncertainties, the UK’s economy has demonstrated remarkable stability and gradual growth, reinforcing the foundation for real estate investment. This economic backdrop not only sustains demand for property but also instills confidence in investors about the reliability of the UK market as a source of steady rental yields and potential for capital appreciation.
2. Established legal and regulatory framework
Ryan highlights the clarity and robustness of the UK’s legal system as key factors in mitigating investment risks. The transparent property laws and streamlined transaction processes in the UK provide a secure legal environment for investors, minimising uncertainties and facilitating smoother entry into the real estate market.
3. Rising demand in the rental sector
Ryan points to the burgeoning demand for rental properties fueled by urbanisation, demographic shifts, and the evolving preferences of a diverse rental market. In particular, cities like London, Manchester, and Birmingham are hotspots for rental demand, offering lucrative opportunities for investors to capitalise on high occupancy rates and attractive rental yields.
4. Diverse investment landscape
Ryan highlights the variety of investment options within the UK property market. From residential to commercial properties, and from buy-to-let investments to holiday rentals, the market caters to a broad spectrum of investor preferences and risk profiles. This diversity broadens the scope for investment and allows for strategic portfolio diversification.
5. Long-term capital growth prospects
Ryan underscores the historical trend of property value appreciation in the UK, driven by a persistent imbalance between housing supply and demand. This enduring trend suggests that property investments promise significant capital growth over time, alongside the immediate benefit of rental income, offering a dual advantage to investors.
6. Impact of regeneration and infrastructure projects
The strategic focus on regeneration and infrastructure development across various UK regions is another factor Ryan identifies as enhancing property values. These initiatives enhance the desirability of locations, directly impacting rental demand and property prices and presenting investors with opportunities for capital gains.
7. Advantageous tax landscape
While acknowledging the complexities of the tax implications of property investment, Ryan notes the existence of certain tax incentives and reliefs can make property investment more financially appealing. With a clear understanding of the tax framework, savvy investors can optimise their investment returns by navigating these tax benefits effectively.
How Assets For Life is helping interested investors
Ryan’s Assets For Life gives learners the insights needed to understand market dynamics and effectively tailor their strategies. The program emphasises resilience and adaptability, enabling participants to turn potential market challenges into profitable opportunities.
With the UK rental market also changing, driven by the younger generation’s preference for flexibility, the mentorship program offers invaluable guidance on navigating the buy-to-let market and establishing a robust rental portfolio.
