The Wealth and Assets survey by the Office for National Statistics (ONS) revealed that 49% of non-retired UK adults chose property as the soundest investment choice for maximising finances, making it the most popular investment option since 2010.
Investing in real estate development can be a smart choice for those looking to build long-term wealth. While many investment options are available, such as stocks and capital markets, real estate development offers unique benefits that make it a particularly attractive choice for investors. In this blog post, we discuss some of the reasons why:
- Tangible Asset: One of the biggest advantages of real estate development is that it provides investors with a tangible asset they can see and touch. Unlike stocks or capital markets, which can be more abstract and difficult to understand, real estate development allows investors to see the property and understand the potential value it can provide.
- Cash Flow: Real estate development can generate steady cash flow through rental income, which provides investors with a reliable income stream. This income can be reinvested into the property, further increasing its value and generating even more income over time.
- Appreciation: the industry can also appreciate value over time, particularly in growing markets or desirable locations. This appreciation can provide investors with significant long-term gains, particularly if they hold onto the property for an extended period.
- Diversification: Investing in real estate development can also benefit a portfolio. Various factors, including economic conditions, local regulations, and demand for specific types of properties, can influence real estate values. Thus, investors can diversify their portfolios and reduce overall risk.
- Control: Unlike stocks or capital markets, real estate development allows investors to have more control over their investments. Investors can make decisions about the property, such as renovations, upgrades, and tenant selection, to help increase its value and generate greater returns.
- Inflation Hedge: Real estate development can also serve as an inflation hedge, as the property's value can rise along with inflation. This can help investors maintain their purchasing power over time and ensure their investments keep pace with inflation.
Residential real estate development can be a smart long-term investment choice for those looking to build wealth. The above reasons make it a compelling investment option compared to other options like capital or stock markets. However, as with any investment, it's important to work with trusted advisors and understand the risks and potential rewards before deciding.
With experts across finance, execution and divestment, the Navian team is uniquely placed to create and manage bespoke investment opportunities in property development that meet your specific parameters for risk and return. Get in touch with us to learn more about how we can help.
