| I have been an IFA for over 20 years in Europe and | | | | a generality take a look at my article on what and |
| Asia. I have met hundreds of clients with different | | | | where to buy for more information.Leverage your |
| portfolio's of assets, different expectations and | | | | money. Due to the relatively secure nature of property |
| different views. Throughout the 20 plus years I have | | | | land assets, Banks and lending Institutions are willing to |
| experienced a number of property crashes and | | | | offer finance The process is generally painless and it is |
| booms in the UK, Europe and in Asia. It is interesting to | | | | normally easy to gear an investment at attractive |
| note that those clients with exposure to property are | | | | rates of interest. In fact in many cases the banks do |
| the ones that in general, have seen the best overall | | | | not insist on regular repayments of capital being made. |
| returns over the longer term and therefore have been | | | | Consequently the yields that can be achieved based |
| in a position to retire earlier! My experience has shown | | | | on the capital invested can be very attractive and in |
| me that:You have to live somewhere. We all need | | | | many cases can be in excess of 10%pa. There are |
| somewhere to live. The simple choice is whether to | | | | also potential tax benefits in financing a property |
| rent or buy. Renting offers none of the potential capital | | | | investment.An income producing asset A major |
| gains that can be made from owning your home. If | | | | attraction of a property investment is that you can turn |
| you are an expat I would still advise purchasing a | | | | it into an income producing asset by renting it out. This |
| property simply as a hedge against future movements | | | | provides for a regular income as well as the potential |
| in the property market. This investment would make up | | | | for capital growth.. For many retirees the rentals can |
| part of your total asset portfolio but not your | | | | provide a retirement income whilst the capital growth |
| investment portfolio. It's important to make the | | | | can provide a hedge against future inflation. All of this |
| distinction between property brought to live in versus | | | | makes property an attractive medium to long term |
| investment property. But still buy it! It is still an | | | | investment.Inflation proof and you can touch it! |
| investment even if you want to keep it for your own | | | | Historically property has outperformed inflation. It can |
| use in the medium to long term.They don't make land | | | | be said that stock market investments have |
| anymore. With growing populations the demand for | | | | outperformed property but in many cases this has only |
| housing continues to grow. The demographics indicate | | | | been achieved by an substantial increase in the annual |
| that land will continue to increase in value. So the | | | | volatility of the asset and therefore an increase in risk. |
| upside potential for freehold or long term leasehold land | | | | Timing of property acquisition is important but may not |
| / property as a long term investment look good. This is | | | | be as crucial as many other asset classes. |