Most anticipate quick wins in the property market, but unless you get lucky with the timing of the market, the true gain in property is made over the long term. As they say, slow and steady wins the race! Here are a few reasons why you should consider a 10-year investment strategy:
Time is money
Your greatest struggle as an investor would probably be the fluctuations in the property market such as a change in house prices, interest rates or economic factors. A 10-year investment plan acts as a cushion against the temporary volatile situations and helps in assessing the fluctuations in ample time.
Compound growth
The cardinal feature of this long-term investment plan is the wealth accumulation over the period, in terms of capital appreciation and rental income. For instance, the UK gov. pricing index shows that the averages prices of UK houses in November 2013 was £176,352 and in November 2023 it experienced a substantial growth up to £285,000, a massive increase of 61.6%.
Tax Benefits
The tax benefits act as brownie points making long term investment more attractive! There is Capital Gain Tax Relief , where the disposal value of the property surpasses the expenses and the cost at which the property was acquired. While the short-term investment properties of a year or less is taxed at normal rate, the long-term investment property will be taxed at either 10% (the lowest) or 15% (the highest) or both.
The short-term gains of property investing are certainly alluring at times but maintaining patience will be the ultimate testament. Explore your investment options today at E.R.E Property and start your investment journey with us!
This is not financial advice, and you should always speak with a financial advisor before making any investment decisions.
