Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Roof Set To Cave In On Property Returns -- City Advice

Recommended Posts

http://investing.reuters.co.uk/news/newsAr...AL-PROPERTY.xml

REUTERS UK

Roof set to cave in on property returns

Wed May 31, 2006 2:32 PM BST

By Tim Sharp

LONDON (Citywire) - Leading commercial property investors are steeling themselves for a dramatic drop in returns from bricks and mortar.
Some fund managers driven out of the direct market by spiralling prices are seeking refuge in property equities. Others are renegotiating leases while circumstances are favourable.
Standard Life has warned that while total returns from commercial property will hit 15.1 percent this year by 2008 they will have dwindled to just 5.4 percent.
Barry MacLennan, investment director at the Scottish insurer, said rental income would be crucial when capital rises tapered off and that he was currently renegotiating leases.
He said investors need to protect themselves from a property slump that could strengthen the negotiating hand of tenants. The average unexpired lease on the IPD index is 9.3 years.

IR sensitive assets are not going to fare well in the global IR hiking environment. BTLs may soon become financial millstones.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.