Have you ever thought about investing? Whether you want to boost your income or save money for a particular goal, there are lots of reasons to give investing a try. While all investing comes with some amount of risk, the returns you can see from the right investment can massively outweigh these risks and bring you the type of financial stability you’ve always dreamed of. So how do you decide which investment route to take, and what should you know before going ahead with your new venture?
Some of the most popular types of investment are property and stocks and bonds. Both these investment types have their own benefits and qualities that make them perfect for particular needs and goals. Stocks and bonds, for instance, can be good for those who want to spend smaller amounts of money on their investments. However, this type of investing can be tricky without the right knowledge and tends to have more risks involved. Property investment, although it can be more costly, has a much better track record for success, with research between 2000 and 2017 revealing that the average UK property value overtook that of the Financial Times-Stock Exchange.
If you do decide to invest in property, make sure you research the best locations for the investment. Currently thriving in a number of locations, now is the perfect time to think about investing in the UK property market. Cities in the north-west like Liverpool and Manchester are seeing the largest rates of house price growth, with properties in the region expected to grow at a faster rate than other UK areas over the next five years. Unlike investing in property in London where the average property price is £484,173, north-west property is a is a lot more affordable, with Liverpool property at an average of £130,677. Liverpool and Manchester also boast some of the best rental yields in the UK, with average yields of between 5.05 and 5.55%.
If you’re set on taking the jump into property investment, make sure you really assess the financial aspects that are involved. Consider whether you have enough money to make an upfront investment as if not, you might need a buy to let mortgage to help you with the purchase. Buy to let mortgages do have limitations, such as the fact you need to earn at least £25,000 a year to qualify, and you need to already own your own home. Other financial aspects like tax should also be well researched, and it may even be worth hiring a financial advisor to help you fully understand the process of your investment and help you create a good financial plan.
All in all, when done right with a good level of research, property investment can really improve your financial status and help you achieve certain goals such as saving for your retirement or building a fund for your families future. If you’re interested in investing in your first property, be sure to choose a trusted company to work with such as rw-invest.com, with properties in prime locations with high yields and affordable prices.