Investors looking for somewhere secure to put their money should consider entering the property market, it has been claimed. Founding partner of Platinum Portfolio Builder Nick Carlile explained that residential real estate in particular has performed well over the past decade and is likely to continue to do so.
He commented: "Property provides an asset-backed income stream which, despite being subject to periodical peaks and troughs like anything else, still has averaged 4.9 per cent growth per annum since 1970." Mr Carlile added that house values in the UK have doubled in the last ten years, even when the price correction that occurred between 2007 and 2009 is considered. But he stressed that investors need to formulate a strategy before entering the market.
Taking a long-term view and holding a property for at least seven to ten years is advisable, he added, as this is likely to mean you can realise strong capital growth. And now could be a good point at which to enter the market, with the latest Knight Frank and Markit House Price Sentiment Index showing that the rate of decline in residential real estate values is slowing, while confidence that prices will rise over the next year is continuing to grow.
- Monday 26 September 2011