Where To Invest In 2019 - FTSE Or Property?
Last updated 22/01/2019
Before the leftover champagne has even lost its fizz, investors and speculators find themselves presented with the financial challenges of a fresh New Year. Their attention is already focusing on where the best returns are likely to be had in 2019 and the UK's torrid political landscape is already proving to be something of a “two-edged” sword.
While the uncertainty of Brexit may be seen as a key factor in suppressing the value of our sterling in the international market place, according to the Office of National Statistics property values continue to hold relatively steady. This is despite the constant battering the economy has received via wave after wave of confidence bashing assaults on the money markets and our retail sector in general.
Is it really a good time to be playing Footsie?
Whatever type of investor you may be, whether a direct player or someone who prefers to cough-up and let someone else handle the whys and wherefores, wanting the best bang for your buck should go almost without mention. While the Footsie (FTSE) has provided some spectacular results over the last few financial quarters, it has traditionally provided those who speculate with something of a rollercoaster ride. While property rental yields have provided a steady 8 – 10% ROI against some of the more spectacular gains in the value of the stock, reports from the retail sector are already painting a rather unattractive picture of high street decline. With so many household names reporting a distinct downturn and some even issuing profit warnings, pundits are expecting a rather turbulent ride for anyone who is still brave enough to take their chances with the FTSE.
Property investment – a potential no-brainer
According to the Independent, UK housing shortages are reported to be reaching an all-time high and there is already a shortfall of four million new homes needed to deal with the escalating crisis. That means that a staggering 340,000 new homes need to be built every single year until at least 2031 just to keep up with the current demand! You don’t need to be a neuroscientist to work out what the likely impact of this “supply and demand” crisis could be for UK property values never mind the demand for rental property and the potential upward spiral of rental income. The really good news is that the current uncertainty around Brexit along with other economic factors appears to be holding current house values firmly in check. The benefits for investors who are astute enough to “strike while the iron is hot” are pretty clear as many experts predict property value increases as the political landscape begins to settle down once more.
A diverse range of investment opportunities
Discerning investors that make property investment a part of their portfolio won’t need to look very far for some attractive opportunities either as there is a wave of projects being rolled out across the county. JaeVee’s equity investor platform offers property investment opportunities into both property developments and buy to let income producing assets.
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Please note, investments into either property or stocks and shares are not guaranteed returns with capital at risk. This blog post is not to be considered as investment advice. We recommend you seek the advice of an independent financial adviser and conduct your own due diligence.