Property Investment Strategy: Long Term

How can you secure and grow your capital?

For many, the objective of a long-term investment strategy is to secure assets or streams of income to fund retirement, to build reserves for major future expenditure such as a child’s university fees or to secure familial inheritance.

Doing that successfully means being able to understand the property market, to forecast growth and expenditure and identify and act upon opportunities to grow capital as and when they arise.

Here are just some of the factors you need to consider to achieve your investment objectives:

Social Trends

Being successful in the buy-to-let market means understanding social trends and developing a property portfolio that can cater to it.

At present, demand for housing in the UK far outstrips supply. According to the Office for National Statistics, the number of new homes built in Britain has declined by around 63% in the last 50 years yet “the population of the UK has grown by over 10 million people (18.7%)”  during the same period.

Furthermore, key changes in the UK’s demographics are creating demand for particular kinds of property:

  • The population is ageing, causing more people to need property for longer so investing in ground level, easy access premises that appeal to retirees might be wise.
  • People are starting families and getting married later in life. This means that there is greater demand for single occupancy flats or apartments so you may choose to target this market with suitable properties.
  • More people are going to university than ever before, creating demand for low-cost accommodation and making house shares and apartment blocks a good investment.

Given current construction rates, it’s unlikely that the imbalance between supply and demand will be rectified for decades and from an investment perspective, this means that the prospects for long-term growth are excellent.

Diversification

Building a diverse portfolio that includes a variety of residential and commercial properties allows you to secure tenants in a range of demographics, spread your investment risk and allow for fluctuating market prices, inflation and periods of vacancy during a property cycle.

You can expect this period to run from 7 to 15 years, during which time it’s possible that despite periods of flux, the value of your property could double while you enjoy a regular income from it.

Review

Your long-term investment strategy may have an exit point planned for 20 years’ time, but in order to achieve or exceed your targeted return it’s wise to conduct reviews of your portfolio every six months.

This means assessing mortgage rates, getting fresh market valuations and reviewing rental incomes to make sure your investments are enjoying the best possible rates and returns available and if not, taking action to get them back on track.

At National Property Portfolio, we provide investors with a comprehensive property investment management service and access to a diverse range of heavily discounted off-market properties throughout the UK.

Having a clear, well-informed, long-term property investment strategy can secure future wealth for you and your family. To find out how we can help you establish and achieve your individual financial objectives, simply contact us on 0800 321 3975.