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How To Make Your Money Work For You In Property Investment
The difference between the rich and the wealthy comes down to the skill of making money work for you. It is simple enough to earn your riches, but leveraging those riches and increasing their value is a whole different ball game.
It’s something I wonder why they don’t teach in school. If it was many other entrepreneurs and me, I’m sure the national curriculum would have an entire subject dedicated to finance management and ethical wealth creation. That latter term still rings a little “taboo” among some people – but it’s about time we had honest conversations about wealth; wouldn’t you agree?
Because wealth equals choice and lifelong security.
The Increasing Value of Property Investment
There’s a general consensus that investing in property is a “good idea”. And so, many people with larger savings will naturally consider it.
However, let’s dive into some hard statistics – as they offer a clear indication of the current property landscape in the UK. According to JLL’s latest research, property prices could see up to a 4.5% increase over the next 10 months, which is just a glimpse of what’s to come in the UK market.
Over the next 5 years, the same research suggests year-on-year growth, with property prices 20% higher than what they are now. These astonishing figures unquestionably show that the UK property market is by far the greatest and most lucrative investment asset.
And that’s just the tip of the iceberg.
While opportunities for capital growth are vast, the country’s rental forecasts are also offering more potential for short-term returns. It’s claimed that the average rent in the UK will increase by 12% in 2026 (source: property reporter.co.uk) – meaning that if you invest in property now, you’re almost guaranteed to start making some quick wins.
Add to this the enormous increase of the UK population, and the demand for rental property will be at an all-time high (with the population predicted at 74 million by 2040). By this point, the country will be living through something called “Generation Rent” – where more and more demographics will opt for rental housing options and expand an investors’ pool even more.
Safe to say, if you have the funds, the best place to put them (and increase their value) is in the property.
Investment Misconceptions: It’s Not All Easy
I’m a real-life example of how property can change your life. Thanks to this phenomenal industry, I’ve built a reputable international brand, employ (and partnered with) hundreds of people, and have ultimately designed a life that allows me to work from any part of the world.
However, as lucrative as this industry is, the rewards don’t always come easy. As outlined above, property investment is a sound choice; but what many online “gurus” and experts don’t tell you is how much effort and hard work it takes.
Many investors are utterly new to the landscape. They simply have a lot of money to pour into a project; but won’t necessarily have the knowledge, resources or time for everything else.
If this is you, then make note that there’s a lot to consider when investing in property, from figuring out which property to invest in (after a thorough area and market analysis) to property maintenance, management, and finding tenants or guests – depending on the rental strategy you choose.
You’ll also need to consider what will happen when things “don’t go to plan”. For example, if your property is damaged or how you’ll continue to advertise during slow seasons such as term-time and just after the New Year. While the pros always outweigh the cons (in my professional opinion), I would be lying to you if I said investing your money into a property will automatically make everything dandy.
As an investor, this route is perhaps one of the safest and smartest; but even the smartest ideas need effort to actually work.
The Benefits of Being an Armchair Investor
The art of delegation is integral to any part of life. If you’re a first-time property investor, think of this opportunity in the same way: You’re money-rich and time-poor. So, in this case, working with professionals who understand the landscape better than you is a smart move.
The problem is, that many investors fall into the trap of pouring their cash into a property (because of all the glorious things they’ve read); and then insist that they lead the entire journey themselves. A lack of time and expertise usually gets in the way here, and as a result, investors sometimes end up creating more problems – rather than profits – for themselves.
I cannot even begin to tell you about the number of times I’ve spotted these “rookie mistakes”. Investors insist on purchasing “fixer uppers” (properties that need a lot of work) and then become overwhelmed when the actual work required comes to the forefront. Or investors who hadn’t factored in all the admin duties that they’re required to keep up with by law – the list goes on.
The property industry is wildly profitable, but don’t forget, it can be fiercely demanding if you’re unsure of how it works.
This is the precise reason why I opened up Investment Opportunities at Luke Capital Group. In a nutshell, we partner with investors who have the money to spare (and allow them to relax as armchair investors) and manage the entire process for them.
So, if you, for example, approached Luke Capital Group and said you had some funds that you’d like to invest into property – we would guide and advise you from the get-go; and only offer properties to you that are guaranteed to make your money work for you. Our team also manages property maintenance, and administration duties and helps you expand your property portfolio – should you wish to do so.
The majority of first-time investors are unfamiliar with the rental strategies available to help them make more money. You may opt for short-lets and serviced accommodation income or a rent guarantee strategy which promises fixed rent every month. One option that we like to promote as Luke Capital Group is property investing through STR (short-term rentals) – this is a savvy choice that yields in excess of 18% per annum (but without any of the hassle, thanks to our team).
As such, every investor is different; and that’s why I love the bespoke service we offer at Luke Capital Group.
The 1% Make the Best Decisions
Becoming a part of the country’s 1% isn’t just about having a lot of money. Ask any successful person, and they’ll tell you that it’s about knowing what to do with your wealth and allowing it to work for you without you needing to monitor it all the time.
The statistics shout loud and clear that property investment is by far the most trusted and rewarding. However, simply making that decision is not enough – you’ll need to weigh up your options and work out which avenue, as well as which consultants, experts and management teams can help you best.
Make the right decision, and you could unlock a wealth of opportunities and even greater financial freedom.
We help you with the right decisions. Check our property investments and get started into your 1% path with us.