Foreign investors are taking advantage of a lower pound to go on the hunt for UK properties. Long-term UK investors are also adding to holdings.
Commercial property is at the often at the top of many investors shopping list, with the price tag of your average London commercial property being in the millions of pounds, most investors will buy through some pooled managed vehicle.
Typically investors will go for one of two main choices:
- A property fund which takes funds from many investors and builds a portfolio of UK real estate, the investors than have the choice to sell their pre-determind times set by the fund manager, but may find at any given time there is a substantial discount or even some restriction on sale. Problems arise if to many investors want to sell their positions at the same time forcing the fund manager to sell properties at knock down prices to meet pay outs.
- Real Estate Investment Trusts (Reits). These are quoted property investment companies where you can buy and sell the shares any time the stock market is open.
There is an index of the main Reits. In the year to 30 June 2016 this Index return was a negative 10.4 per cent, mainly owing to the late sell-off after the vote. Over the subsequent year to 30 June 2017 there has been a gain of 9.3 per cent.
Reits are currently at substantial discounts to their stated asset values. They have marked down these values modestly over the last year.
For any invest that would like to know more about UK property based, asset backed investment products that achieve a phenominal 10% annual return safely, with as little as 5000 GBP as the minimum investment level they please visit www.devdosh.com today and speak to one of our advisors who will be happy to help.