Should I Invest in Property? Your go-to Guide

We often get enquiries asking about property investment and the returns generated on our developments.

Investing in property is often seen as a reliable way to build wealth and secure financial stability - however, like any investment, it comes with its own set of risks and rewards. 

If you're wondering whether to invest in property, this guide will help you with the pros and cons and understand the different types of property investments so that you can make an informed decision.

Pros of Property Investment

Potential for Appreciation: Historically, property tends to appreciate in value over time. This means that the property you buy today could be worth significantly more in the future, providing a solid return on your investment. Our Liverpool developments at Liverpool Waters and beyond have proven this time after time.

Regular Income Stream: Rental properties can provide a steady stream of income. If managed properly, the rent collected can cover mortgage payments and other expenses, potentially leaving you with a profit each month. 

Tax Benefits: Property investors can take advantage of various tax deductions, including mortgage interest, property depreciation, maintenance expenses, and more. These deductions can significantly reduce your taxable income.

Diversification: Adding property to your investment portfolio can diversify your assets, reducing risk and potential losses from other investments like stocks or bonds.

Tangible Asset: Unlike stocks and bonds, property is a tangible asset. This means you can physically see and use it, which can be reassuring for many investors.

Cons of Property Investment

High Initial Costs: Buying property requires a significant upfront investment, including a down payment, legal costs, and any necessary repairs or renovations. This can be a barrier for many potential investors.

Ongoing Expenses: Property ownership comes with ongoing costs such as taxes, insurance, maintenance, and property management fees. These can add up and affect your overall return on investment.

Market Fluctuations: Property markets can be unpredictable. Economic downturns, changes in interest rates, and local market conditions can impact property values and rental income.

Liquidity Issues: Real estate is not a liquid asset. Selling property can take time, and you may not be able to access your money quickly if you need it.

Management Challenges: Owning rental property requires time and effort to manage tenants, maintenance, and other issues. Hiring a property manager can alleviate some of these challenges, but it also adds to your expenses.

Now we've discussed the pros and cons or property investment, you can see the benefits of property investment and consider taking advantage of the property on offer currently at Liverpool Waters, Liverpool’s latest regeneration scheme costing over £5.5 billion.

A typical return on your property investment should be around 5-7%. You can calculate this by dividing your annual rent by the purchase price and multiplying by 100.

For example: You buy an apartment at our latest development, Aquitania, for £180,000. A tenant then rents this at £950/pcm. This will generate a 6.3% return on your investment annually. After 10 years you will have doubled your investment if the markets remain consistent.

Investing in property can be a lucrative venture if approached with careful planning and consideration, our latest development, phase 4 of West Waterloo place, Aquitania is situated in the region of the city where capital growth will be the greatest - in the heart of Liverpool's £5.5 billion growth district.

Located on an island site between the Leeds Liverpool Canal and the iconic River Mersey, our exceptional apartments provide views of Liverpool Bay and the Irish Sea, and with phases 1, 2, and 3 sold out before completion, Aquitania (phase 4) presents an unmissable opportunity for investors seeking prime properties in a flourishing area. Anticipated for completion in Q1 2025 (subject to contract), this Liverpool development promises a perfect blend of modern living and strategic positioning.