If you’re a retiree looking to get involved in property investments around the UK, the going may seem a little tough, considering the effects of Brexit on the economy and the uncertain nature of property investment. Shares from government bonds, cash accounts and shares seem to be less and less rewarding, if not a straight-up net loss due to inflation. So perhaps, it may be best for investment newcomers to consider investing in fixed-income investments.
When you have a portfolio of fixed-income investments, you’ll find that your income stream is far more stable and less prone to economic downturns than stock shares, bonds or other unfixed sources of income that are influenced strongly by the global economy. A guarantee of income is the big selling point here, rather than the high-risk, high-reward game of unfixed income investments which may end up producing a net loss.
When it comes to fixed income investments, there are few better options than hotel room investments. Not only is it inherently more stable than unfixed investments, hotel room investments have a guaranteed rate of capital growth. Whereas government and corporate bonds tend to have an average income yield of around 1% – 2.5%, hotel room investments can get you 8% yield rates, a guaranteed source of income in these trying times.
Of course, nothing is truly guaranteed unless you make savvy business choices. Remember to choose hotels that get regular visitors, usually hotels around tourist attractions, business centres, or major transport hubs like airports. Even then, the average hotel will still produce a sufficient amount of income to keep your income steady: the whole point of investing in hotel rooms is that it’s a very stable investment.
Knightsbridge Ventures are a new property investment company bringing fresh new investors into Europe and overseas.