Investors often ask the team at Experience Invest, ‘Where can I invest my money?’
There is no simple answer. From property investments to stocks and shares, from crowd funding opportunities to mutual funds or even private pensions, there are multiple options available.
With so many ways to invest money, it can be hard to decide where to begin.
Where can I invest my money?
Investing in bricks and mortar is a popular choice for investors. The prospect of capital gains and a regular rental income is an attractive option for many investors.
And when it comes to property, there are numerous sectors for investors to pick between.
Most people are familiar with the residential buy-to-let sector however, other asset classes such as student accommodation, healthcare property, commercial property, hotel and alternative investments are often overlooked.
If you are considering a UK property investment, this video interview between Experience Invest and The Telegraph will explain more about the UK’s best performing asset classes.
Many people like to invest in property because it is a tangible asset. Property has a level of familiarity to it and, for the first-time investor, it is a concept which is less intimidating than stocks, shares or funds.
In an ideal world, investors should seek to achieve a passive rental income from their property and, when they are ready to sell, rising property prices could mean an investor will sell at a profit.
Of course some sectors are better than others and investors should always keep an eye on the market to ensure they are getting the most out of their investment.
With over 11 years of experience selling income generating property investments, the experts at Experience Invest have a few wise words of wisdom when it comes to investing.
When considering where to invest money, keep these top tips in mind…
Recently, the pulling power of London has been questioned by investors. High property prices coupled with relatively low yields has forced many people to reconsider where to invest.
Investment activity has moved towards the regions (the likes of Manchester, Liverpool and Leeds) where properties can still be purchased at a sensible price. Government investment in the ‘Northern Powerhouse’ has also made these locations more attractive and, if the experts are correct, these regions could experience a property price boom in the near future.
2) Diversify where possible
If you wish to own more than one property investment, look into spreading your money across a selection of property types. This would help to safeguard against any market fluctuations.
3) Don’t spread yourself too thin
Variety is the spice of life however, investors should look to have a comfortable mix in their portfolio to make it worthwhile.
While having a selection of assets may mitigate risk, spreading your portfolio too thin may mean you could miss out on the positive effects in an event of one market picking up pace.
Also, remember to stay within your budget. While it may be tempting to invest outside of it, you may struggle if interest rates change or if there is a sudden dip in the market.
4) Know when to exit
Understanding when to exit an investment can equally determine the success of your venture. Do you wish to hold on to the investment and receive a long-term rental income or do you wish to profit on house price increases?
Don’t be afraid to sell up if the going is good.
Investors should keep an eye on the market and never sit back on their investment. Planning multiple exit strategies could protect your investment portfolio.
If you find yourself asking yourself, ‘Where can I invest my money?’ contact Experience Invest to find out what property opportunities may suit your requirements.