The ‘right time’ to invest will depend on many factors, not least what you are hoping to achieve. If you’re looking to make a quick profit from short term investments in property, the UK residential market can be risky: many opportunities are over-reliant on the market, which is beyond your control. If, however you’re looking for wealth preservation and capital growth in the medium to long term, then the UK residential market, and specifically the Private Rental Sector (PRS), is worth focusing on.
The long term investors we work with typically want to invest in property to achieve:
Sometimes, they worry about whether now is the right time to invest in property, due to media messaging or other people’s opinions. Other people might be forecasting that house prices will:
Industry “experts’” opinions can often be conflicting or biased. They are also not universally applicable. The housing market is not one market and different trends apply in different geographies.
So, should you invest in UK residential property – if the market is rising, stable or falling? Let’s take each in turn.
The case for investing in a rising market
The case for investing in a stable market
The case for investing in a falling market
The biggest regret of many of the investors we’ve worked with is not getting started sooner. For example, had you invested in the right assets in 2008 just before the housing market crash, you could have benefitted from substantial growth and rental income in the decades since.
In the wise words of Warren Buffet, if you’re focused on investing to preserve and grow wealth it’s about ‘time in the market, not timing the market’. It’s always a good time to invest, if you get the strategy, deals and management right.
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