Property Investing - March 2015
03-22-2015
by Financial Adviser
Property has not received so much attention of late, with more focus on equities and pensions.
But it is a useful diversifier for those wanting an alternative to equities, and there are various ways in which to invest.
One can invest in a property fund – which holds a number of properties directly. For something more liquid, investors can buy into a property equities fund, which buys into the shares of companies operating in the property sector. One can also invest in buy-to-let, which might have more immediate returns, but carries certain risks with it as well.
To look at advisers’ attitudes to property, Financial Adviser surveyed more than 400 of our readers to gauge their interest in investment in property.
It would seem that most financial advisers have provided some exposure to property for their clients, and the majority have increased their exposure to this asset class over the past five years. But a large minority – 44 per cent – seems to have shown indifference to property over the past five years, having neither increased nor decreased their exposure.
Many have suggested that exposure to property will increase over the next few years. Investors are looking for a more reliable alternative to equities, and with the arrival of pension freedoms, some are suggesting that many will invest in BTL.
The residential property market has spiked considerably over the past year, although more recently prices have flattened out. London and the South East remain hotspots, but experts suggest that good opportunities exist outside this region.
Property remains a popular diversifier and its potential should not be underestimated.
Melanie Tringham is features editor for Financial Adviser
This special report is sponsored by Aviva Investors. All editorial is independent.