In an era of low-interest rates and rising inflation, UK investors are expecting an average annual return of 8.7 per cent on their investments over the next five years, according to the Schroders Global Investor Study.
Surprisingly, the expected high returns come as interest rates have only just experienced their first rate rise since the recession and savings rates rarely beat inflation. Even the stock market which has provided annual returns of 7.2 per cent over the past three decades, hasn’t been able to deliver the expected returns.
So, are investors expecting too much?
Put simply, yes. But only for investors who are only willing to adopt a savings account strategy. For smart investors looking further afield, property offers more security than the stock market whilst producing the expected returns of up to 10 per cent per annum.
Why is property a good investment?
Over the next 5 years, the average house price in the UK is expected to rise by around 5 per cent year on year and by 2025, 1.8 million more households will be looking to rent rather than buy. Investors can take advantage of this trend by becoming a Buy-To-Let landlord.
The UK Buy-To-Let market is worth nearly £1 trillion with over 1.75 million private landlords (The Guardian, 2016) currently investing in property. However, in recent years, many investors have turned their attention away from Buy-To-Let due to the Government’s attempts to de-centivise investor and the worry of a Buy-To-Let bubble. This is despite property showing no loss in any 5-year period since 1973. In addition, it’s an asset which provides both capital growth and monthly income so if you’re an investor looking for an annual return of up to 10 per cent then a property investment is right for you.
Edifice Invest has a range of properties available and we work closely with investors to ensure that Buy-To-Let is right for them. For those seeking a ‘hands off’ investment, Edifice Invest can deal with the developer and property management company to ensure your property is let to suitable tenants.
Plus, all of our property investments are available off plan with a discount of up to 15 per cent so you can buy it, let it and then forget it. To discuss the latest opportunities with one of our advisors, fill out our contact form below and we will be in touch.