What’s Better: Property or Stocks?

In the realm of investment, the age-old question persists: where should one channel their hard-earned funds for optimal returns and long-term growth? Should you invest in bricks and mortar, seeking security and stability in the tangible assets of real estate? Or should you dive into the dynamic world of stocks, where fortunes can be made (and lost) with the click of a button? Here at Centrick Invest, we are firm believers in the power of well balanced, well researched property investment – that’s why we’ve created our latest Smart Investing guide to empower growing and budding investors to dive into the property market with the tools and knowledge it takes to make a success of your investment. But why is property a good investment, and what sets it apart in the battle of property vs. stocks?

Understanding Your Investment Goals

Before you start to consider whether property or stocks are the best option for you, it is vital that you understand your investment goals. Are you looking for long-term capital appreciation and stability? Property could likely be a good investment for you. Do you have a few thousand pounds or less to invest, and want to be able to quickly withdraw your funds from fluctuating markets? Stocks and shares could be the better asset class for you. It is important that you answer this question regarding which form of property investment is best for you – or if you are even in the financial position to invest at all – before you commit to funneling your funds into an asset class.

What Is An Asset Class?

An asset class refers to a group of financial assets that share similar characteristics and behave similarly in the marketplace. Each asset class offers distinct investment opportunities and serves different purposes within a diversified portfolio.

Investment asset classes encompass a diverse range of options, each offering unique characteristics and potential returns. 

• Equities, or stocks, represent ownership in a company and offer the potential for high returns but also carry higher risk. 
• Bonds are debt securities issued by governments or corporations, providing steady income through interest payments and serving as a more conservative investment option. 
• Commodities, such as gold, oil, and agricultural products, provide diversification and serve as a hedge against inflation.
• Alternative investments, including hedge funds, private equity, and venture capital, offer unique opportunities but often require higher capital and entail greater complexity.

However, the asset class in question today is real estate, which has been a popular investment asset for decades in the UK. Of course, as a property investment company, the team at Centrick Invest has a strong predisposition towards property as an asset class, but all investments are different and it’s important to align with your goals which is why were sharing the facts and statistics around property and why we think property makes the strongest asset class, and why for us it’s a clear winner of the ‘property or stocks’ debate.

Why Property Is The Best Asset Class

Investing in UK real estate offers a clear chance for individuals seeking consistent returns and long-term capital growth prospects. With various factors favoring the property market, it remains an appealing choice for investors aiming to diversify their portfolios and secure financial stability.

Most importantly, the need for property in the UK is undeniable, as housing demand is constant. Whether for residential, commercial, or industrial use, property serves as a vital asset fulfilling the fundamental need for accommodation. This inherent demand ensures that property investment maintains its value, despite the market’s natural fluctuations. Moreover, the demand for property is steadily rising alongside the UK’s expanding population. According to the Office for National Statistics, the UK population is projected to reach 73.7 million by 2036, driving the need for accommodation. With increasing urbanisation, immigration, and demographic changes, the demand for housing and commercial properties continues to grow. This population growth not only sustains the demand for property but also creates opportunities for rental income and appreciation in property value.

Additionally, property forecasts for the UK market are overwhelmingly positive, providing investors with confidence in their investment decisions. Despite occasional market fluctuations, long-term projections indicate sustained growth and resilience in the property sector. According to JLL, average rents across the UK are expected to increase by 4.2% annually until 2028, with a 5% uptick forecasted for 2024 alone, offering competitive yields for landlords. This rental growth is anticipated to be even higher in key cities and residential hotspots such as Birmingham and Manchester.

Lastly, the UK property market experiences a persistent imbalance between supply and demand, further driving investment opportunities. The government has set a target of constructing 300,000 homes annually to address this disparity, though research suggests that 340,000 homes are actually needed to meet demand. Despite the government’s efforts falling short of the target in recent years, this imbalance presents a positive opportunity for investors, intensifying competition and driving price appreciation, particularly in high-demand areas and emerging markets.

Property vs. Stocks

Stocks are a very popular asset class, with 23% of Brits having invested in stocks and shares as of 2024. They make fantastic options for budding investors looking to diversify a broader portfolio, take advantage of market volatilities, and can work especially well for those with just a few thousand pounds or less to invest. However, there is no guarantee that those investing in the stock market will make a return, with the past performance of a specific stock not being indicative of its future potential.

Additionally, choosing which stocks to invest in, when to withdraw funds, who to invest with and how much to invest can take a lot of time. In order to respond accordingly to market volatilities, stock market investors need to constantly be aware of trends and news which changes daily. On the other hand, property investment experiences far fewer market volatilities and requires far fewer responsive measures in order to manage, especially if you outsource your management and enlist the help of an investment company such as Centrick Invest.

Get The Property Investment Lowdown With Centrick Invest

At Centrick Invest, we are passionate about property investment – we see the exceptional returns it can generate, the way it can transform investment portfolios, and the financial freedom it can bestow upon investors. 

Still wondering whether property or stocks are best for you? Have a browse of our Smart Investing guide, created to help those considering property investment to clarify whether it is right for them and, if so, to give them the best possible guidance to make a success of their future investment. If you want to uncover our Smart Investing insights and fast-track your path to investment success, download our free property guide by filling out the form below: