Thursday, January 18, 2007
Property investment outlook for 07
Where to put your property money in 2007
This article still sees property and real estate as a solid invetsment for 07, and little chance of a house price crash. With the establishment of REIT's, will property investors who otherwise would have gone into BTL be attracted to the safer investment vehicle of a REIT?
7 thoughts on “Property investment outlook for 07”
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Davros says:
Honestly, who’s going to put their faith in the predictions of an estate agent called Jacqui?
tyrellcorporation says:
Question is, how safe are REITs?
Why not just bung your money in a high-interest account for a no hassle return and steady monthly incomes?
Dohousescrashinthewoods says:
I have heard one strategy where you rebalance asset classes in a portfolio.
So now would seem a good time to take profits in property an redistribute them into shares, bonds and cash.
Ticktock says:
Question is, how safe are REITs?
Not very. They are pretty much just Real Estate bonds, with the unit price a reflection of combined asset value, and the yield a reflection of rental income.
Ticktock says:
P.S Last time something like REITS was attempted was the early 90’s and we all know what happened then. They have, however, become very popular in other anglo-saxon Nations, and provide nice stable revenues for US pension funds.
They are also valuable tax avoidance schemes for property firms selling out of the market, or ‘cashing in their chips’ as it where.That should tell us something in itself.
The attraction of REITS is (depending upon how they are structured) that they can be proffitable even in a falling market. For ‘long’ investors hungry for Yield (like pension funds) REITS are attractive because, as with bonds, yields rise as prices fall. This too should tell us something.
Chillilizard says:
There are too many people out there who are going to think to themselves why not put their deposit they can’t put into a house into a REIT instead. It’s funny this sort of thing happens at what I hope is the peak of this bubble.
🙁
Nohpc says:
because you have to pay tax on a high interest account tyrell. One must maximise their tax free savings. This is the most basic of financial sense.