Diversifying your portfolio into property

17 Sep 2019

moneyWith the instability in global financial markets, many individuals are looking towards property as a more stable investment.

Property has always been a good way to diversify your investment portfolio. It is a stable, tangible, lower-risk commodity that potentially grows in value over the long term, and isn’t affected by markets as much as shares or stocks are.

There are many choices when it comes to climbing the property ladder, depending on your investment goals. From renting out property for a passive income, a second holiday home and wealth building for retirement, to renovating and reselling, or buying developments and selling them for profit a few years later. And then there is also investing in property abroad.

You need to decide which kind of property investment would suit your individual circumstances and investment goals

Benefits of investing in property

•    Great way to diversify your portfolio, it is an inflation protecting tangible asset that can be monetised regardless of the financial markets
•    You can build equity for the future
•    Generate passive income through rental – tenants pay your mortgage for you
•    Increases cash flow at retirement – rental income supplements your retirement income
•    Benefits and improves the local community – you will use local contractors, builders and suppliers
•    Can become a business – buy, renovate and sell, landlord, etc.
•    It helps spread your overall investment risk
•    Alternative way to save
•    Real estate value appreciates over time, but bare in mind that it is an illiquid asset meaning you can’t trade it like stocks on a daily basis

(taken from Fitsmallbusiness.com)

Speak to your deVere adviser about introducing you to our property team: [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.