Common Misconceptions Around Property Investment


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Property investment can be a strong way to spend, but there are still some misconceptions about the market.

Property investment, as with buying into any type of asset class, has a certain number of myths surrounding it. Even at a time when there are many positive reasons for putting money into property in the UK, there still remains a number of misconceptions and worries in the market that can run the danger of putting people off.

But what are the main misconceptions around property investment? In a new video interview on The Telegraph, Experience Invest takes a look at a few of the most common and tries to debunk the myths.

It’s Time Consuming
Probably the most common misconception around, people generally believe that investing in property will be a very time-consuming process. While for some hands-on landlords this will be true, for many who work with an investment and management company like Experience Invest, it’s a different story altogether.

If you invest in this way, you’re not having to deal with the letting, maintenance, repairs and other everyday aspects of your investment. After you buy units, you simply allow the company to deal with the process for you as you wait for the returns to come in.

It’s Risky
All investments come with an element of risk – of course, they do – but the idea that property investment is a big risk is a common misconception. With a far slower cycle than other assets, the property is way less susceptible than the likes of stocks and shares to any sort of big falls or immediate price corrections.

In an addition to this, if you make a passive investment in below market value rental properties, no matter what happens in the market, you will have guaranteed returns for a set number of years, which mitigates against any risks that may occur in the market.

Don’t Buy New
It’s often said that new-build properties are around a third overpriced. This is actually true in many cases, but normally when it comes to homes being sold to the people who are going to live there. It’s often more common when it comes to new-build rental investments that buyers can actually get a better deal on brand new properties.

By investing in off-plan property that has yet to be completed, investors are often able to secure a real bargain, giving them far better returns, in the long run, thanks to the low entry price they start with.

You Need a Lot of Money to Invest
Finally, there’s a belief in property that those who are investing are the super-rich, professional landlords who are putting millions into the booming market in order to secure strong returns. Sure, these people are some of the big spenders in buy-to-let property, but the majority of landlords are actually those who own just one or two properties.

You don’t need all the money in the world to purchase properties, as companies like Experience Invest allow buyers to just invest in a single unit in a new build, which can bring about a really good return on its own. It’s not just the big spenders who are able to get themselves a good deal and a fantastic profit from the buy-to-let market.