Is Property Still A Good Investment In 2023?

In times of economic uncertainty, investors may wonder where to distribute their resources for long term growth and stability. Throughout market fluctuations and evolving trends, property investment has always been seen as an attractive industry.

So why is property still a good investment in 2023? 

 

Tangible Asset with Intrinsic Value: 

Estate will always hold value. As long as people need homes, offices and land, these assets will be essential. These foundations are fundamental for people, therefore, producing a continuous steady demand and a market to leverage capital if due diligence is completed correctly. This fundamental need supplies a foundation for the long-term value of property investments. 

 

Potential for Appreciation: 

Property investments offer the potential for long-term appreciation. While fluctuations are common in the market, the general trend for real estate is to increase in value. While limited land supply can create an increased demand, the value of property follows proportionately in sought after locations. Cities such as Sheffield, Derby and Swansea have become more desirable recently with a predicted ROI score of 17-23 according to Home to Go. By carefully selecting properties in high-growth areas such as these, investors can receive help from the potential capital appreciation to help build their portfolio over time. 

Read more: https://www.hometogo.co.uk/media/property-investment/  

 

Inflation: 

Property investments can act as a hedge against inflation. Inflation erodes the purchasing power of currency, but real estate values tend to rise with inflation. As the cost-of-living increases and inflation sits at 8.7%, rental income and property values have also followed suit.  

Read more: https://www.bbc.co.uk/news/live/business-65653791 

 

Conclusion: 

Today property maintains an attractive option for long-term investment. Peer2Peer Finance states “In the economy that we live in there is always a need for funding so there will always be borrowers looking for a good deal and there will always be people looking for a return on cash.” Suggesting that not only is property still a worthwhile investment, but throughout market volatility, there will always be a substantial demand for property. However, as with any investment, it is essential to conduct thorough research, understand market dynamics, and seek professional advice to make informed decisions*.

 

*Don’t invest unless you’re prepared to lose money. This is a high-risk investment.