When planning an investment strategy, this is naturally a question you need to be asking. With so many options for investors currently out there, and new ones sprouting up constantly, you need to ask yourself if property is the best investment option for you.
While other investment options like stocks or cryptocurrencies have the potential for massive returns in a very short time period, they also run the risk of crashing and of you losing your money.
Forbes reported in October 2022 that the CEO of JPMorgan recently issued a ‘stark warning’ of growing market panic, which could cause cryptocurrencies to plummet in value in the near future.
If you are looking to invest in property but want a short-term investment, try looking at Real Estate Investment Trusts, or REITs. These operate like stocks and allow you to invest in property for much less than buying a full property.
In contrast to this, the UK housing market saw the average property price rise to £296,000 in August 2022, an increase of £36,000 from 12 months before.
While other investment options come with higher levels of risk, the UK housing market is famously stable, meaning your money is likely at less risk. Due to property being a physical asset, it is unlikely to decrease in value rapidly.
Add into this the multiple income streams that property can generate for you, and you can see why this is such a popular method of investment for many. You will need to pay income tax on your rental income, but this is not likely to be a large portion of what you take home.
Thanks to this combination of security and long-term passive income, many investors believe property is one of the best things to invest in right now, as they can sit back and see the returns coming in without worrying about their investment losing value.
For more information, read our guides on ‘is property the best investment?’, ‘how to invest £30k’ and ‘how to invest £75k‘.