New-Build and Off-Plan property investment consultants, YPC Group, have revealed why they think Real Estate investment beats all other forms of investment. In an article for Opp Today, New-Build Specialist David Lines explains why he believes that no other option can rival Real Estate investment.
“When I first started investing in property,” Lines says. “I did so for a number of reasons. These included the fact that property investment is easier to understand.”
However, this was not the only reason Lines gave for his preference for Real Estate investment.
4 Reasons To Consider Real Estate Investment
When investing in the stock market, Lines says that it felt as though his investment was always in somebody else’s hands. But with Real Estate investment, there is much more control.
Even when handing property management over to a specialist company, Lines says that property investment allowed him to be more in control of the fate of his investment.
Rental Income Dividends
Real Estate investment, Lines says, generates a much higher income than investment in stocks, bonds and cash accounts. He states that his gross rental yields average between 5% and 7%, which is three times the dividend yield to be expected from UK stocks.
With a global undersupply of homes, property is always in demand. As such, even in financial crises, like the one in the late 2000s, the property market bounces back quickly.
Real Estate investment, Lines states, has “given me a capital gain over the last 20 years that stock market investors can only dream about”.
With stock market or government bonds, if you invest £20,000 and the market rises by 10%, you make £2,000.
With Real Estate investment, on the other hand, if you take that £20,000 and use it as a deposit, borrow £80,000 to buy a £100,000 property, a 10% market rise will give you £10,000… a 50% return.
Well, we already know how lucrative Real Estate investment can be. Obviously, as we always say, investments of any kind are never without risk, and Real Estate investment is no different. However, as David Lines and YPC Group has stated, there are some excellent benefits to be gained when you consider this form of investment portfolio.