The bricks and mortar of a property are tangible and not a money market instrument which could suddenly lose its entire value, or its capacity for usefulness, which drives future value recovery. As a result, within a portfolio of mixed assets, LIP can provide useful diversification qualities and within a balanced property portfolio, LIP can be a diversifier from real estate investments with higher risk profiles.
These constituents add up to an attractive asset class which has only recently started to open up to retail investors.
Lisa Best is research manager for Intelligent Partnership.
Complimentary copies of the Long Income Property Report can be found at intelligent-partnership.com