Tuesday, 11 November 2014

Wealth management of property

As leading mortgage brokers in Bishop’s Stortford Enables IFA’s have witnessed alongside the rest of the UK that investing directly in bricks and mortar can clearly lead to significant capital growth and has done for many in the UK over recent years. Property investment often starts with borrowing to buy a home and then paying down the mortgage.



And investors in property over the years have seen huge returns over the years investment in bricks and mortar has proved to be a reliable investment.  Property prices of course are influenced primarily by supply and demand and with supply short in the UK and problems with supply and credit, property has boomed but it can equally fall sharply.

Property tends to perform differently to other asset classes and as ever, the experienced wealth managers at Enable would always recommend diversification across asset classes when considering investing. Historically this is undoubtedly why property has been a corner stone of any portfolio or investment for many years.
 
Investing in property on an individual basis once you have secured your home, can be enormously beneficial but also very risky. In a downturn property can drop dramatically it can also be very slow and expensive to buy and sell. If you are wanting to make sure property is part of your portfolio, beyond your home,  a collective investment in the property sector may be a better bet. Why invest in just one property when you could invest in many. There are lots of diversified property or real estate funds available

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