International Investing Habits: Why We Should All Invest for Growth
It’s no surprise that ‘Investing for the Future’ and ‘Making Money’ are the number one and number two top reasons for investing in any area. Property/Real Estate has always been a popular choice and while it’s open to market fluctuations like any investment, it’s the best asset geared towards growth. It represents a tangible, real world and less volatile investment for future planners who want to make the most out of retirement.
Two important things to consider are Yields and Capital Growth, especially in property investment. While short-term “flippers” are finding it difficult to get the most out of their investment, those who prefer to utilise a mid-term to long-term strategy can reap the benefits of both annual yields and potential capital growth.
For example, investing £50,000 into a property, with a mortgage on the remaining amount – could allow the investor to both expand capital through market growth while creating long-term passive income post-mortgage term. Consider then small yields through rental income and you can find a clear pathway to generating a comfortable retirement.
Repeatable, scalable and importantly, accessible to the majority. While all investments carry risk, property is the best asset for consistently delivering growth, particularly when it comes to mid and short-term strategies.
Here’s an example of an Expat investing every year at different starting points and earning a return of 10% per annum till the age of 60. This shows that the amount is nearly three times compared with the amount if you had started at 35. (Fig A – Source: Khaleej Times )
Capital growth may be the primary goal for most investors and certainly was in our primary research, heading up responses with 37% citing it as the main reason for investing. However, it’s important to remember yields.
While not as headline-grabbing, when practically applied, yields of 5 – 8% can provide short-term passive income, protect capital in bricks and mortar for interest-only mortgages or help investors repay any LTV for capital and repayment mortgages.
Ultimately, wherever you are in the world, you should be balancing the benefits of time and capital with your financial goals.
Looking After Your Own Future
So where does this leave you? Everyone starts somewhere and regardless of your reason for investing, the best time to start is as soon as possible. Once you have a clear plan and trusted partners, you should look to make the most of each and every investment opportunity.
As a property investment company, we have a wealth of experience in utilising a property portfolio for retirement planning. We’ve shared 5 of our best investment opportunities below – mixing off-plan new builds for maximum capital growth with ready-to-let opportunities for short-term rental yields.