Property investment
Is residential property still a good investment in 2020?
Although past performance is not a guide to future returns, historically, UK residential property has been resilient during periods of uncertainty, particularly in terms of rental income.
While periods of short-term volatility have emerged over time, the long-term trend of the UK residential property market has been upward, with prices rising steadily and with far less volatility than some other assets, such as equities, which can have dramatic peaks and troughs in response to global events.
Despite the ongoing uncertainty impacting global investment markets, Mail Finance’s trusted partner, Bricklane, believes that the fundamentals of the UK residential property market remain strong, and that it continues to represent an attractive opportunity for long-term investors, due to the ongoing imbalance between supply and demand.
By 2022, more than one in five UK households is expected to rent. However, while demand has never been higher, there is a significant shortage of high quality homes in the UK Private Rented Sector which shows no signs of being addressed in the near future. Forecasts are not a reliable indicator of future returns.
Spread your money across multiple properties
For a long time, the only way to invest in residential property was through buy-to-let, which required large sums of upfront investment and also made investors vulnerable to concentration risk, as their money tended to be locked up in a small number of properties located in close proximity to each other.
Rather than owning property directly, with Bricklane, you can invest in a choice of two diversified property portfolios known as Real Estate Investment Trusts (REITs): The London fund and the Regional Capitals fund. Combined, these funds spread your investment across 136 properties in major UK cities including London, Leeds, Manchester and Birmingham, and more properties as they are added.
While risk cannot be eliminated, investing in Bricklane’s funds could help to reduce it by spreading your investment across a greater number of units, geographic areas and tenants, ensuring that each individual tenant only accounts for a small portion of rental income.
Pay 0% investment fee in 2020
If you’re looking to use your 2020/21 ISA allowance, Bricklane could be a great option. With a Bricklane ISA (Type: Stocks and Shares), you can invest up to £20,000 in Bricklane’s funds and pay no tax on income or gains no matter how large your investment may become.
Bricklane has also extended its Zero Fees offer until the end of 2020. Invest before December 31 and you won’t pay an investment fee on any transaction. That’s a saving of up to £400 if you were to invest your entire £20,000 ISA allowance.
If you’re interested in learning more about investing with Bricklane, you can visit bricklane.com or contact their UK based customer support team on 0203 1111 432 9:30am - 5:30pm, Monday to Friday.
As with all investing, your capital is at risk. You may not be able to sell your investment within a reasonable timeframe. Bricklane doesn’t give advice and you should seek independent advice before investing. Please see further risks in the Important Information box.