Patternbricks Sourcing

Shares vs property: where do I invest?

Shares vs property: where do I invest?

When you buy shares of stock, you are buying a piece of a company. If a company has 1,000,000 shares outstanding and you own 10,000 shares, you own 1% of the company. As the value of the company’s shares grows, the value of your stock also grows.

The Credit Suisse Global Investment Returns Year book suggests stock market returns were 5.1% a year, with inflation taken into account, between 1900 and 2016. In the golden era, from 1980 to 1999, the annual return was 10.6%.

So, did anyone get rich from investing in shares?

The perfect advocate for stock market investing is the billionaire Warren Buffett. One of the world’s richest men, he initially built a fortune by fastidiously buying shares he believed were unfairly undervalued. According to Business Insider, he achieved a return of 24.5% a year, after fees, between 1957 and 1969 compared to only 7.4% for the Dow Jones stock market index. Today he’s number three on the Forbes Rich List, worth $86bn.

Could I make money from property?

OOO YES! Property has turned thousands of Britons into multi-millionaires.

House price data from Nationwide building society offers some killer facts – if you bought an average house 40 years ago, you’d have paid £13,820. Today, you could sell it for £211,443. Off the top of my head (ahem) that’s an overall increase of 1,429%.

Here are some of the reasons why we love property investing;

Cash flow: Rent from property can provide steady, reliable cash flow on a month-to-month basis. Many investments only improve your cash flow in the long-term or when you sell them.

Limiting fraud: It’s more difficult to be defrauded in real estate because you can physically show up, inspect your property, run a background check on the tenants, make sure that the building is actually there before you buy it, and do repairs yourself. With stocks, you have to trust the management and the auditors.

Using debt: Using leverage (debt) in property can be structured far more safely than using debt to buy stocks.

Low start-up costs: You can now start investing in property with very little investment upfront. This is a very interesting property strategy that lets you benefit from decent monthly cashflows and break-even in a few months on your initial investment.

Safety: Property investments have traditionally been a terrific inflation hedge to protect against a loss in the purchasing power of the pound.

Ready to Invest?

At Patternbricks Sourcing, we specialise in helping investors just like you find property that’s right for them now and in the future. We are committed to helping our clients become successful property investors, regardless of how busy their lives might be.

We spend our time finding just the best investment properties for our investors by sourcing great Buy To Let, Below Market Value, Serviced Accommodation & Rent to Rent property deals that will guarantee a great return for you the investor. If interested in receiving our latest property deal alerts for FREE then please join our investor mailing list HERE

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