Is it Better to Develop or Invest in Property?

To try and offer a balanced answer to this question, let’s take a close look at the risks and returns associated with developing or investing in a property:

– Property Development

Many of those who enter the world of property development do so because it’s a good way to grow their capital and create value. Property development is also a good way for you to preserve your wealth in the long-term.

The majority of the gains you’ll experience are likely to be a result of a capital value increase. Developments can offer a lot more value than investments in terms of larger returns and value creation. However, you need to be knowledgeable about the development of properties and you’ll need quite a bit of capital to hand too.

There tends to be a greater risk when it comes to developing properties as opposed to investing in them where you may be able to share the risk and invest less capital, but if you know what the risks are and you’re prepared to take them you could see some good returns from development projects.

– Property Investment

Property investment can be hugely attractive for those who would like their money to work well for them. Property investment can generate large returns, more so than perhaps some more traditional types of investing or saving.

When someone invests in property they either do so for the rental gains or for capital growth. In the UK, property prices tend to double every decade, and they have continued to do so over the last 6 decades. There aren’t many other types of investment that have the same potential, and this is why investing in properties can be such an attractive thing.

If you invest in a property you’re likely to see that it has a huge advantage compared to a lot of other types of investment. If, for example, the growth in the property market is not quite as high as the growth rates in some stocks on the stock market you can use positive gearing to your advantage. Positive gearing involves you receiving more money through rent from all of your tenants than you pay on mortgage repayments, property maintenance and interest. Positive gearing can occur when there is a high demand for property when interest rates are low.

About Us

Slater Forbes are one of the leading property investment companies specialising in off-plan property

20 Years Experience

Please note that Slater Forbes Investments is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This website, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of ”The Development’. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. We recommend that all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. All investments attract a degree of risk and Slater Forbes encourage all clients to undertake their own due diligence. Property prices can fluctuate and the value of your investment may go down as well as up. Prices and financial illustrations are provided as guidance and are examples of the possible discounts, yields and returns that investors could achieve. Copyright in and to this website and documents and videos referred belong to Slater Forbes, which is a trading name of Green Key Sales and Lettings Ltd, which is a UK registered company no 10037602.