Investing in Property – May 2012
Anyone in property pre-2007 had a rollercoaster ride, to say the least. Those who failed to exist before the crash were stung by plummeting values and dropping rental yields. This was made worse by the fact many businesses, particularly those on the high street, were also facing a torrid time, leading to more defaults on rent, loss of tenants and instability in the commercial sector.
However bad the crash was, property was not the only market to suffer in the past few years. Values and returns across almost all assets tumbled, regardless of geography, sector or expected risk. But it seems the timing of the property crash has led to more investors swerving away from it than would be expected.
With many funds launching in 2006, as the property boom built up, a large number of retail investors piled into the asset class moments before it crashed only to pull out shortly afterward and lose large chunks of their portfolio. This is reflected in our survey of the property market in this special report.
However, these days yields are looking up, businesses are marginally more stable and there has been a rush to buy prime property. So could now be the time to return to the sector? And of the many routes to do so, what are the benefits or putting it in your pension, as explored in this special report?
Whatever the route, it seems property should not be written off yet.
IN THIS REPORT
Property was turbulent in the six or so years since it became mainstream with retail investors. But Laura Suter asks is now the time to get back in?
Can professional connections be the way to take advantage of the SIPP commercial property opportunity, asks Greg Kingston?