Tuesday, July 3, 2007
IAs in the rest of the world, interest rates in Europe over that period have moved steadily higher and now, for the first time in five years, 10-year swaps (essentially the cost of money for a big property investor) have risen above prime office yields.
In the 20 years that I have been writing about financial markets, investing has become a progressively more international business. When I started, few private investors looked far beyond our own shores; these days, worries about the US housing market or the latest wobble in Shanghai routinely hit the business headlines.If you believe, as I do, that inflation is lurking round the corner waiting to mug us, you won't want to give up completely on one of the best hedges against rising prices. But if you think that shifting out of your UK property unit trust into an international one is going to keep the double digit returns rolling in, you may be in for a disappointment.