3. Consider Investing in Buy to Let
For those looking for the best way to invest £500k in a lower risk strategy than stocks and shares, buy to let is the way to go.
Buy to let is a property investment strategy that involves buying a property for investment purposes and then letting it out to tenants to generate monthly rental income.
The property market is a much safer option than the stock market, as it is far more secure.
If you have 500k to invest, UK property investment is for you.
Why Invest £500k in Buy to Let?
Property is an investment strategy that is ideal for those who want both short-term and long-term passive income.
Buy to let investors generate returns through rental payments and gain a lump sum once they sell their property, provided the value has increased.
Both rent prices and house prices in the UK are consistently increasing.
As of August 2021, the UK’s average rent hit a record £1,053, according to HomeLet, which is 6.9% higher than last year.
Rent outside London has also seen a sizeable increase, with an 8.1% jump to £892, which is over 10% higher than pre-covid prices!
Likewise, house prices are also rapidly increasing.
Average UK house prices experienced their sharpest monthly rise in 15 years in August, increasing by 2.1%.
Real estate company Savills recently updated its industry-renowned five-year house price forecast for the UK.
It has been estimated that there will be a 21.5% increase in house prices by 2025.
The North West, in particular, is set to rocket with a rise of 28%.
These increases have occurred in a time of economic turmoil and uncertainty, highlighting how safe the investment is.
Those considering how to invest £500,000 should definitely explore buy to let opportunities in the UK right now, for strong returns both now and in the future.