Tuesday, July 28, 2015

Residential property investment is the UK's top asset class

The strong rental income that can be achieved in the market at the current time, where yields have fluctuated at between five and seven per cent for some years, coupled with the strong capital gains predicted over the next decade (some five per cent per annum has been forecast) means that residential property is both strong at the moment and somewhat future proof. 

Another real benefit, IPD said, of investing in residential property over other asset classes, is the sheer resilience of the market. While other assets such as commercial ventures suffered badly in the wake of the financial crisis in 2007, residential property was generally quite strong. 

While prices stalled for some time and even saw slight dips, by 2011 valuations were starting to rise again, and we now see the value of properties sitting at levels in excess of the 2007 all-time peaks. This shows just how resistant to problems residential investments can be, and paints property in a strong light as the number one investment class for those looking for the smartest way to buy.