investing

A Millennial’s guide to investing

Millennials: a term referring to those born between 1980-2000, and the first generation to grow up in a digital, media-saturated world. Immersed in an electronics-filled, social media environment, millennials are generally known for their tech savviness. While most millennials may feel at ease with the latest technological innovations, when it comes to investing it can often be a different story.

The word “investments” can seem daunting especially when you’re just starting out but it doesn’t have to be! Read on to find out the differences between saving and investing, the risks involved and our suggestions on where to start.

Saving or Investing – Which is best?

To achieve short term goals such as purchasing a car, booking a holiday, or just putting money aside for a rainy day, saving may be the best short-term option. While easy access accounts can sound appealing, interest rates are low with the current average at only 0.28%. [1]

Investing is a much more strategic approach; the aim being to grow your current fund of money. There are risks in all types of investment, and short timescale investments with high returns are usually the riskiest. That’s not to say that planned investments can’t earn you healthy amounts – but they take longer.

One of the best places to start when deciding whether to save or invest is to assess your current financial situation alongside your end goal. What is it that you are hoping to achieve? Do you have the time and knowledge to make a secure investment?

What are the risks of investing?

Diversifying is considered the smartest way to invest. That means if one investment doesn’t work out as planned there are other options to fall back on. Splitting cash and savings across different kinds of products (called asset classes) could reduce the risk of the overall portfolio.

The buy-to-let property market is still seen as a reliable and stable investment despite rising costs (due to regulatory and tax changes), and it consistently delivers long-term returns that far outstrip the equity markets and other investable assets.

What does Hubb Property Group offer that I can’t do myself?

As property experts with extensive experience in the sector, we can take the hassle out of your hands. Using our skills and expertise, it’s our job to offer you advice and maximise the value of your investment.

We specialise in sourcing undervalued real estate opportunities in emerging locations and unlocking hidden potential in order to deliver high interest returns to our investors. Our long-established relationships with property experts across the UK allow us to source run-down properties, below market value opportunities, and secure off-market deals.

At Hubb Property Group we offer a number of different investing options. With our Buy-To-Lets, we have rental investment plans that vary between 5 – 10 years with interest rates paid on a quarterly basis. We also use our strategic relationships with lettings agencies to ensure the property is always occupied to achieve the expected rental income. Do get in touch with us if you want to learn more.

Sources:
https://www.bsa.org.uk/statistics/savings