Property prices go up as well as down, so you might not get out what you put in. The same goes for how much rent we collect. Our forecasting tools help with the guesswork but they're not a reliable way to predict the future. Please also note that invested capital is illiquid and is not protected under the Financial Services Compensation Scheme.Ok, got it
We are not authorised to advise you on what property to invest in so deciding on a suitable property investment is very much dependent on your individual circumstances.
Some properties will appeal to investors who want to make money faster and over a shorter period, or have a higher level of risk tolerance. So maybe the property is in an unusual location, or a new location, or needs a lot of work doing on it. This kind of investment could go either way and make more money than you expected, or it could bomb and make less money. That’s the risk.
Other properties represent more stable and reliable investments, but perhaps don’t offer such lucrative rewards. They may be in a location that historically has always attracted tenants, it may have a good standard of facilities without being spectacular, so it will likely retain its value but won’t necessarily appreciate in value hugely. This will appeal to a more cautious investor. Somewhere you will find the property that fits your personality, financial status and ambitions the best.
What we would say, however, is that diversification is a smart move. By diversifying your portfolio you are lowering the risk of any individual property not performing. So diversification is a way you can manage your investment by spreading the risk to mitigate any potential losses.
Spreading your investment across different assets lessens the risk because you are not dependent on the success of one market or one asset, and likewise, if one investment bombs or a particular market is hit by something unforeseen, you won’t lose all your money in an instant.
In terms of investing with UOWN, diversification allows you to spread your investment across two or three different properties and allocate your money proportionally where it makes sense therefore if one investment fails, you still have the others to fall back on.