Thursday 11th February 2016 saw the FTSE fall to a 52-week low, recovering 3% the next day and closing 1,000 points lower than this time last year (1). Forbes also reports a slowing of the stock market upswing that has been apparent since the end of the recession; suggesting a return to normality after a short period of high growth (3).
In a market that seems to be slowing, what is the best approach to take when investing for maximum returns?
Well, there is no correct answer: everybody has their own appetite for risk, and of course varying investment aims. The Telegraph suggests a diversified approach to investment is sensible to achieve a balanced portfolio (2). Indeed, we at Property Moose are also advocates for this approach: many of the members in our community spread their capital across many smaller and diverse investments.
For example, you could invest in a 2 Bedroomed Mid-Terrace Single Family Let with underwritten rent in Nottingham (4), or alternatively a 4 Unit Apartment block in Hartlepool with underwritten rent (5). Indeed, investing in both and taking a ‘portfolio approach’ could go some way toward mitigating the risks posed by local market forces and other external factors (such as a house needing a new roof or not having a tenant!).
Diversifying your investments through Property Moose would also mean you can become a landlord without the added strains of property management (6). There is no barrier to entry, such as the need for significant capital reserves or a deposit and a mortgage: you can invest from £10.
Property alone is not the answer to a successful investment portfolio. It is one part of a wider group of investments, including the stock market, that could help you build a diverse and resilient investment portfolio.
Click here to view the investment opportunities currently available on Property Moose.
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
References
- http://www.bbc.co.uk/news/business/markets/europe/lse_ukx
- http://www.telegraph.co.uk/finance/personalfinance/investing/12150801/This-chart-shows-how-different-investments-perform-during-market-turmoil.html
- http://www.forbes.com/sites/nextavenue/2016/01/12/why-you-shouldnt-panic-about-the-stock-market/#11fe933d78d2
- https://propertymoose.co.uk/App/#/investments/62
- https://propertymoose.co.uk/App/#/investments/61
- http://moneyweek.com/property-crowdfunding-may-look-tempting-but-its-very-risky/
