As a business owner, you undoubtedly have a million things to do all the time, from handling clients, to closing deals andmanaging staff.
With such a busy lifestyle, planning for the future and coming up with a retirement plan can fall along the wayside. However, many self-employed people don’t have a pension or a set retirement date. Because of this, it is important for business owners to consider different ways they can save for the future. Property investment is a popular strategy for many business owners, but some haven’t even considered it. So, should business owners be investing in property? Here are a few reasons why it is a good idea.
Property remains one of the most popular asset classes out there, with price rises netting millions for buy to let investors. There are a number of skills you have as a business owner which mean that you have an advantage when it comes to investing in property. Being able to find opportunities and look for diamonds in the rough is definitely a useful skill.
Property investment experts like RW Invest are perfect for helping you to navigate the world of property. For busy business owners who don’t have time to spare, working with a property expert is a great way to make sure your money is used wisely. They often offer lucrative opportunities before they have been released on the open market, allowing you to get the best deal possible too. Off plan developments can be a smart way to invest in property, with below market value properties and assured rental yields.
Attractive Returns on Investments (ROI)
To have a successful career in business, it is essential to have an analytical mind and an eye for opportunity. Being able to see potential in an unusual property or a developing areameans that they can often spot potential gold mines. Property investment can provide extraordinary opportunities for savvy business owners who are looking to maximise their savings. In the Hopwood district of Heywood near Manchester, the average property price went up a huge 86% in just a year. In 2016, the average cost of a home there was £78,000 and in2017 it rose to £145,000. Other areas in the North West are also experiencing significant price rises and rises in rental yields which allow business owners to earn extra income from their monthly rental payments.
Additional Source of Income
If you are running your own business, you often have to set up your own pension or save for your retirement yourself. For businessowners who don’t have a set pension, investing in property could be a good alternative. A buy to let property will earn the owner rental income which they can save towards their retirement and use as an income during retirement too. It also offers more flexibility than a standard pension, as there is always the option of selling the property if you need to release extra funds. Another option is to have several different buy to let properties instead of a pension, with a diverse portfolio providing more security, as well as the option of selling on a property for a large sum. Building up a property portfolio is one of the best things a business owner can do in order to prepare for the future, alongside their business venture. Property tends to hold its value, and even if house prices fall, rental payments still provide a source of income.