Investing In Property

Property investment can provide income and capital growth, but it should never be seen as risk-free. It requires careful analysis and should be part of a diversified strategy.

I always recommend that investors seek advice from qualified professionals before committing to property. If you would like to discuss opportunities, I would be happy to help you explore the options available.

Many investors aim for a blend of both, though at times one will take priority over the other.

We are living in a period of historically low interest rates. This benefits borrowers but has been extremely challenging for those who once relied on cash deposits for income. In most developed economies, bank interest rates no longer keep pace with inflation, leaving savers worse off in real terms. Retirees in particular may struggle to rely on deposits for sustainable income over decades.

Bond yields and annuity rates have also fallen to levels that are unattractive for most investors. Equities may provide income through dividends, but relying on selling shares during a downturn can be high-risk. Commodities are usually too volatile to be a reliable income source.

Against this backdrop, good-quality property continues to present opportunities for steady and attractive income. The key is identifying the right property in the right location, at the right price.

The way I approach property is as something beyond your main residence. All investors should consider whether property can add value to their wider strategy, but they should also recognize that, like every asset class, it comes with both advantages and disadvantages. Diversification is essential, and property should be treated as one component within a broader investment plan.

Investing in property can form an important part of a good financial plan. I recognize this and always maintain access to a range of attractive property investment options.

It is important to clarify that I am not, and never will be, an estate agent. There are already countless specialist companies and websites offering thousands of listings of houses and apartments.

If you are looking for a specific home in your local area, these are the places to go.

Final thoughts

Some investors assume property is free from the risks attached to other asset classes. The phrase “safe as houses” can be misleading.

Property markets are cyclical, and performance varies significantly between locations. For example, yields in provincial UK cities may be far higher than those in London, where trophy areas such as Kensington and Belgravia remain in demand but provide weaker rental returns.

Property prices can stagnate or fall, especially when leverage is involved. Mortgage financing magnifies both gains and losses. In falling markets, investors can face negative equity, as many did in the late 1980s.

Additionally, interest rates have been at historic lows for years, but this will not last forever. Rising rates could affect both property values and the cost of borrowing.

A note of caution

Through partnerships with leading developers and investment specialists, I can offer access to a range of opportunities:

• Individual UK property ownership

Both residential and commercial projects direct from developers, often with rental guarantees. Student accommodation is a particularly interesting niche, especially outside London where yields are typically higher. In the capital, prices have risen so far that rental returns are less appealing. In contrast, well-positioned properties in UK regional cities often deliver more attractive yields.

• US commercial property

For US dollar investors, commercial property in cities such as Chicago and Florida offers steady income through strong tenants on long leases. These opportunities can be tailored: larger investors may acquire entire developments, while smaller investors can participate through private syndicates.

• Private syndicates in UK property

High-yielding opportunities such as Houses of Multiple Occupancy (HMOs) often require significant capital outlay. Syndicate structures make these investments accessible to smaller investors, usually with a five-year holding period to ensure an organized exit.

• Specialized investment vehicles

These can include niche commercial property schemes, land-title structures, or participation in both open-ended and closed-ended property funds.

Examples of property investment opportunities

Are you seeking income or capital growth?