Rental property investment could be the safer option in today’s struggling stock market
With COVID-19 causing unrest and uncertainty across the globe, investors could benefit from a bricks and mortar solution to their concerns.
Coronavirus is dominating every headline and every conversation, and seems set to do so for the foreseeable future. This has left people around the globe concerned and confused, following official measures such as regular hand-washing working from home and self-isolation.
Everything from the healthcare industry to the corporate world has been hugely impacted by the spread of COVID-19, so it’s no surprise that investors are feeling more than a little cautious at the minute when it comes to putting their money down. This can be seen most clearly in the stock market. The FTSE100, NASDAQ and Dow Jones have all seen catastrophic drops recent weeks, crashing harder than we have seen this century.
So, for those looking to find a safe home for their money and an astute investment, many investors are looking for something more concrete: buy-to-let property.
Could this be the solution for your investment concerns? We’re going to take a closer look at the situation surrounding the coronavirus, the stock market and rental property investment.
COVID-19: the impact on the stock market
The word ‘disaster’ has been thrown around a lot recently when describing the state of global stock markets. More than once, stock market commentators have compared the current situation to the devastating US stock market crash of 1987.
Just a few days ago — on 12th March — the Dow Jones industrial average declined 2,353 points in what was called a “historic selloff” by The New York Post, one which hadn’t occurred since Black Monday in 1987.
Black Monday was the name given to 19th October 1987, when the stock market dropped by 22%. The Dow index closed that day at 1,738.74, down 508 points for the session.
To put that in perspective: on 16th March 2020, the Dow fell a record-breaking 2,997 points.
Investors are turning to rental property
As the coronavirus continues to dominate, Global Investments Incorporated have received a significant number of enquiries for US buy to let properties. These enquiries are coming from all over the world, from areas like Dubai, Singapore, the UK and France.
This growth in interest can be seen as investors look to put their money in something demonstrating greater stability right now.
“ In these trying times, we’re all looking for something to anchor us. This is true of our investments too, which is why increasing numbers of people are opting for bricks and mortar investments instead, particularly single and multi-family homes under good management. “ Mike Moodie . CEO Global Investments Incorporated.
Why choose buy to let?
Property investment offers two distinct forms of revenue — a monthly rental income from those letting the property and of course, the lump sum received when a property sells in the future with potential capital appreciation.
Buy-to-let investment is seen as a longer-term process, which, considering today’s climate, is a good thing. The coming weeks and months may be uncertain for us all, but one thing is for sure : people will still need property both during and following the coronavirus outbreak.
Property investment means putting money into something tangible — something that can be seen, touched and experienced by both yourself and others. In times of uncertainty, there is comfort in knowing that your money is yielding a strong return and growing in value as the months and years pass.
Looking to take advantage of buy to let opportunities? Speak to a member of our team today and we’ll help guide you through the process. Email Mike or any of his team at Global at email@example.com