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Property Investment Vs Precious Metals

May 23, 2022

In today’s property surveying blogpost topic, we are going to be taking a look a property valuation and, in particular, how property investment has faired over the past year.

This blog is based on information from external sources and it is worth noting that, at the time of its publication, the information we have provided was indeed accurate and correct.

Property investment is by far one of the most volatile types of investment that an investor can set-out on and make. 

Whilst it comes with the all-important safety of bricks and mortar, it can also be susceptible to investment changes, supply and demand changes, issues with the overall maintenance and upkeep of the property, tenant issues, not to mention natural disaster.

We are often asked by property investors whether property is as sound and safe an investment as the general public would believe it to be. 

In order to consider at this, we are going take a look at the property market over the past year versus precious metals and, in particular, silver.

Over the past year silver has seen its value decrease by 11.11%.  This would effectively mean that if you invested £1 into silver a year ago from today, you would actually have made a loss. 

Yes, everything that glitters is not gold and, in this case, silver as shiny as it is, will not have given you the rewards that can come with investing in precious metals.

On the other hand, had you invested £1 into property a year ago, you would now be sitting pretty on a 10.2% increase over that time.  This effectively means that over the past year the average price of a property in England has gone up by 10.2%.

So in a hypothetical situation, where you had invested £1 into property last year, you would actually be sitting on an increase in the investment value of that £1.

Obviously, the hypothetical situation, whereby you could do much with a single £1 coin is something to be desired.  However, work this up to the average property of £275,000 in England, then you can quickly see how that 10.2% can translate into a more memorable return on your investment.

Property investment is an art and not a science, here at Stokemont we have seen all types of property investors over the years, from those that invest in prime central London to those who like to invest in out of town retail parks, to those who invest in commercial property and even those who like to invest in high risk property. 

The key thing in any investment into the property market is to ensure you take the advice of a RICS Chartered Surveyor and RICS Registered Valuer.

A good and qualified surveyor and valuer will ensure you have the full understanding of exactly what you are investing in, in terms of its condition, defect and repair. 

However, they will also be able to give you the all-important insight and information on the surrounding area, so you can fully understand how your investment will fair over the next few years.

In many cases, especially in the more built up areas like London, the natural improvements that take place day-to-day are going to see the property price increase, which will translate into a higher return on the investment value.

A good example of this is the construction of the new Elizabeth Line on the London Underground/TFL. 

The Elizabeth Line is going to significantly change the way in which the more suburban areas on the outskirts of London are able to access the inner parts of the city.

The line itself will stretch for 60 miles, from Reading to Heathrow, with tunnels running from Shenfield to Abbey Wood.

Investment like this dramatically changes the property prices in those areas that are going to benefit from these stations as, effectively, the commute becomes that much easier.

Property valuation is something we are regularly lucky enough to be a part of here at Stokemont. 

If you need a property valued and would like to discuss how our team of RICS Chartered Surveyors and RICS Registered Valuers can be of assistance to you, then please get in touch with us today and we will be more than happy to assist and advise you in respect of that matter.

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