As stagnant interest rates continue to dampen savers’ spirits, property investment is growing in appeal as a low risk and high yield strategy for securing the future of your finances. However, if you’re relatively new to real estate investment, you may be wondering where the opportunities and risks lie. Is it best to invest in overseas property, or are the investment opportunities in the UK a safer bet? Whilst there’s no black and white answer to this question, we’ve got some tips to help you figure out the best option for you.
UK Property Investment
When weighing up an investment, it’s crucial to have a firm understanding of both the market and country you’re investing in. For this reason, many new investors decide to stay on home turf, as they have a better understanding of market fundamentals and find it easier to keep track of the economy.
What’s more, it eliminates issues such as exchange rate fluctuations and tax complications that offshore investment can bring. Any change in the value of your commercial or domestic property, hotel room or car park can easily be measured, making staying on top of your portfolio simple.
However, as a relatively mature market, yields can be somewhat limited compared to offshore investment opportunities. Whilst certain niches such as airport car parks have a significant growth potential in the long term, compared to overseas property your return on investment will be relatively low and slow.
Overseas Property Investment
Overseas investments can be daunting at first, because the variables are much harder to measure. Not only do you need to develop your understanding of another country’s economy, property market and political situation, you must also keep a close eye on currency movements, to ensure that you make well-timed investment decisions.
However, overseas property investment can offer much higher yields, particularly if you invest in up-and-coming areas with a stable economy and political system. Provided you do your research, they can be just as low risk as UK investments; currency fluctuations and tax breaks can even work in your favour.
If investing in a hotel or villa abroad, you could also benefit from the option of accommodation for holidays or business trips, saving you money on travel and helping you to get the most out of your assets.
In principle, there’s very little difference between investing at home and abroad. Any investment, no matter where the property is based, should be researched thoroughly to ensure that you strike the right balance between risk and return. To give you confidence that you’re making a sound decision, it’s a good idea to consult a property investment company. They will help you explore your options, and give you access to exclusive property investment opportunities that match your risk profile, finances and goals.
Ready to consider your options? Contact IQ Property Investments to explore opportunities in the UK and overseas. Give us a call on 0330 100 2505 for more information, or email firstname.lastname@example.org