History Doesn't Lie

There's a reason why the expression 'Safe As Houses' is so commonly known and used, because in the UK we live on an island with a housing shortage and a growing population. This creates a supply and demand dynamic which creates continual growth in prices of properties as more people desire fewer available properties. We often quote another popular saying that 'History Doesn't Lie' meaning the facts speak for themselves when we look back. If we take a snap shot of the last 50 years at average property prices, we can see very clearly, despite short bumps and dips a steady upward trend. It is this steady upward trend which makes investing in property one of the best growth vehicles there is for returns and safety.

Let's look at at the interest your money would earn sitting in a typical savings account. The Halifax are offering many types of savings accounts but a quick view shows 'easy access' or 'fixed saver' accounts giving 0.55% interest but only for 2yrs then it switched to 'everyday saver' at 0.2%. There is a slightly more attractive looking account the 'regular saver' which is offering 2% interest but only for 1yr then it switches to that 'everyday saver' at 0.2%. So to put this into context, if you were to deposit £1000 at 0.2% interest after 12 months you would have grown your savings to £1002 , that's a whopping £2!

In contrast the property market shows that the average house price doubles every 8-10 years, which obviously gives a much healthier return on investment. Of course not everyone has the time or knowledge to invest in property because there is certainly a skill in understanding the property markets and buying well. That's why joint venture partnerships can be a perfect win win situation for people with money looking for a healthy passive income and for property investors looking for cash to build their portfolios. Every JV partnership will vary depending on the deal and the desires of the investor but it's not uncommon for an investor to be looking at receiving 5% - 8% interest on their investment and the terms can be agreed over whatever time period suits both parties. Unlike the banks which dictate & limit the time you can earn a better rate of interest (as in the examples above) as a JV partner you can negotiate your terms and then repeat as many times as you wish with your property partner to keep your money working for you.

So before you open your next savings account, why not consider joint venturing with a property expert and enjoy a worthwhile passive income.