Annual investment in UK property reached £42bn in the first quarter of 2014, with London being targeted in particular by both UK and International investors. According to Commercial Real Estates Agents, Cushman and Wakefield, more than 75% of the purchases made in the beginning of 2014 in London came from International buyers.
If you’re a first-time investor into property, Simon Morris’s Guide to Property Investment Options helps ask the right questions about property portfolios and arms you with necessary information to ensure that your potential investments are low-risk with guaranteed returns.
What to expect in 2015
It’s been widely reported that outside London house prices should stay the same, however the London market will continue to grow. An influx of foreign investors helped property prices throughout 2014, especially in the London property sector. It is expected that the growth in the capital will continue in 2015, with more noticeable changes happening after the election in May. According to Rightmove, property is set to soar over the next five years, predicting gains of over 30%.
Types of Investments
Property Investment Bonds are proving to be an increasingly popular option for discerning investors looking for low risk and high yeild. Companies use fixed income investment products, or bonds, as a way of raising finance. The interest payments are made at a determined rate and the bond will have a maturity date in which the loan is repaid to the investor. This means that with bonds you know exactly how much you’ll get back if you hold the bond until maturity.
Property Investment Funds are also increasing in popularity and is an essential part of any balanced portfolio. However, you must insure you are aware of the risk – which are outlined in more detail in the Simon Morris Property Investment Guide.
Types of property funds
Real estate investment trusts (REITs) make up the majority of property companies, they have greater tax benefits that other listed property companies. 90% of profits are paid to shareholders as dividends so REIT companies don’t pay corporation tax on their assets.
Property investment trusts pools your money to buy property and property company shares. They are considered to be like any other company, so a 10% tax is applied on dividends for basic-rate payers, with a higher 32.5% for higher-rate payers.
Property has been stable in recent years, in terms of longer term investments. The current UK economic climate does show signs of people hoping to make a quick investment on larger amounts of capital. Investment into property-based investment funds for investors with available cash can offer attractive yield at relatively low risk. If you are considering investment in property – check out the following Simon Morris Investment guides for more information.