Statistics as of 2023 show us that Savings interest rates on average for the UK are 0.8%-0.9% and the Chinese savings rates on average are 1.5%-2%. With the average Inflation rate in the UK at 7.5%-8.8% and the average inflation rate in China at 2%-2.2%.

What this demonstrates is that any large amounts of capital you have are not best placed sat in the banking establishments, this has been the trend for almost 5 years now and with govt debts sitting at trillions, it does not look to be favouring the investor or high net worth individual anytime soon (Unless national debt comes down drastically). If a government borrows too much, the government may be tempted to deal with the debt by increasing the money supply (printing money) and paying off the debt through inflation. But if this happens investors will lose the real value of their bonds. The bonds will fall in value because inflation is reducing their real worth. (This is sometimes known as default through inflation). If investors fear inflation, they may sell bonds, causing interest rates to rise

This leads me to highlight why property as an asset class, in particular within the UK . The average house prices have increased in the UK between 8.8% to 9.9% for over a decade now – with the mounting need to stabilize national debt and coupled with the low supply of housing in the UK , this trend is predicted to continue for at least another 5 to 10 years. At present in my particular part of the UK, the 3 counties 5-year plan will only be able to provide 30% to 35% of the required housing and property within the next 5 to 10 years.

Property when purchased in accordance with business acumen and due diligence can provide a stable platform for increased equity at approx. 8.8%-9.9% every year. Along with property comes income generating rents between £800 to £1000 per month ( figures stated are net examples not gross after all running costs and void periods are accounted for) .

If we took a comparison against this proposed property earning potential against the rate of interest and inflation, we can see that unless you can find a banking facility to provide you with at the very least an interest rate of 5% you will be losing the value of your money sat in the bank doing nothing because inflation will be eroding your capital. With investment in UK property, you can expect a equity gain of at the very least 8% every year along with rental yields.

Property is not as Liquid as stocks, shares and bonds as it requires 5-year terms possibly more, however property is by far more forgiving than commodities and securities, if you encountered a crash or unfavourable trend you will have to simply wait it out until it came back up as your property will still be there, it is a tangible asset and won’t be lost for ever – you will be able to recover your values and investments over time.

Therefore, it makes sense to hold capital in property as you secure it against the high rates of inflation and stop your capital devaluing over time, property will not only be a way to mitigate the risk of inflation, but you will gain on the equity value overtime as the properties become more valuable – and last but not least you will be owning an asset that can also be part of a business model and bring in a monthly cashflow element.
I would like to be able to support you with this in the UK, at the minute our investment proposals Look to provide a ROI of 9% to 10% on your capital invested over a 5-year period possibly longer.

Please look to contact me for an investment proposal that I can provide for you, I will outline to you all the elements of what I can do for you and how I can ensure you obtain a property investment in the UK property sector.

Return of interest formula ROI = (Gain – Cost) / Cost

Please click into the button and request our proposal and we will send it to you to read at your own leisure, we can connect via we chat , zoom or any other method suitable to discuss further.