Press
Release – London, 13-08-17
Should International Property be in your
portfolio?
“Bricks and mortar” has, for decades, been a guiding principle for savvy investors looking to make a return. While property investments don’t always promise the kind of stellar returns that can be earned on riskier investments, they also don’t come with the downsides. And, over the long-term, all the evidence suggests that property is the best means by which to grow your money. In fact, while data recently published by Heathstone Investments1 reveals that, over the course of one year, returns on property investment are eclipsed by those in equities (7% and 12% respectively) – the story is a different one over the longer-term.
Over
10 years, investments in property and equities both return around 8%, while
over 15 years, property investments return nearly 12%, while equities return
less than 8%. So, while property investment doesn’t always contain the highs
and lows of other investment, for those looking to make a stable and long-term
return on their money, the data suggests it is the preferable option. With
political uncertainty having rocked stock markets and equities in recent years,
and with further potential turmoil on the horizon, the case for investing in
bricks and mortar has never been stronger.
The
question then becomes however, which property to invest in?
For
many years, a staple choice for those looking at property investment has been
the buy-to-let sector. There are an estimated 2 million buy-to-let investors in
the UK, invested in a private rented sector which is home to more than 5
million people. The dynamics behind this market have traditionally been strong,
and continue to be so as rising property prices mean younger people spend more
time in privately rented homes, prior to one day getting on the ladder
themselves. Housing affordability has become a political issue however and the
government in recent years has attempted to discourage investment in buy-to-let
by raising the level of stamp duty payable on second home and buy-to-let
purchases, as well as reducing the amount of tax relief landlords can claim on
profits earned through buy-to-let investment.
As
a result, increasing numbers of property investors are now looking at the other
end of the market – luxury property. There’s good reason for this growing
interest. Recent data from Christies International Real Estate reveals a market
currently at record levels with the world’s top ten reported property sales all
priced above $100 million2 for the first time. And with property
investment funds promising double digit returns on luxury investments3,
combined with a dwindling number of dividend paying shares available4
to would be investors, it’s easy to see why this new investment class is growing
in an era where interest rates and returns on savings around the world remain
subdued.
Unlike
traditional property investments however, luxury investments may often require
more initial capital. While this can be seen as a positive in that greater investment
will lead to greater returns, it can also be daunting for somebody new to the
market. Furthermore, alongside the question of what to invest, there is also
the question of where. With cities from Toronto to Hong Kong selling themselves
as the next global property hotspot, this can be more complicated than it
sounds.
The
Luxury Property Show this October at the London Olympia is a perfect
introduction to the exciting world of luxury property investment and a great
opportunity to meet likeminded investors, and explore potential opportunities. The
show, now in its 10th year, consistently attracts the movers and
shakers from the luxury property world who can help guide an investor to making
the right choice. Likewise, attending the show can save an investor countless
hours and air-miles as they’ll be able to get detailed insights into potential
properties ranging from mountain and lake retreats in Northern Europe to luxury
loft apartments in New York, via beachfront homes in Dubai.
Alongside
insights into luxury properties and property markets around the world, the show
also gives potential investors unparalleled opportunities for networking with
fellow investors and property consortiums as well as access to a full programme
of seminars aimed at seasoned investors, as well as those who are new to the
market.
Eddie
Sikora, Director, the Luxury Property Show, said: “The luxury property market
is growing exponentially at the moment with an unprecedented number of sales
topping the $100 million mark. As the old adage goes however, early bird
catches the worm, and now really is the time for those thinking about investing
in this market to take the plunge.
“Whether
you’re a seasoned investor or a complete novice, there are always questions to
be considered and contacts to be made. Over the course of the last decade the
show at the Olympia has become a central event in the luxury property calendar,
and is where people go to develop a better understanding of this complex market
and get key insights into the next property hotspot. It’s an opportunity for
investors, developers and the real estate community to come together and discuss
the key trends and, more importantly, to match those looking to invest with the
right property for them.”
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The
Luxury Property Show runs from 27th – 28th October at the
London Olympia. For further information about the show and opportunities to
either exhibit or visit, head to http://www.theluxurypropertyshow.com
.
To
arrange an interview or comment from Eddie Sikora, please contact Liam Thompson
at lthompson@sks-london.co.uk
or on +44 (0) 203 290 6001, or via http://sks-of-london.com
.
1. http://www.hearthstone.co.uk/private-investors/asset-class/why-uk-residential-property/
3. http://sterlingluxurygroup.com/tag/7-12-real-estate-return-on-investment-roi/
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Luxury Property
Show Key Sponsors:
FX: Foremost Currency
Group:
Currency Exchange specialists with over 12 years
expertise in supporting property agents and clients with their overseas property purchase or sale. https://www.foremostcurrencygroup.co.uk/
Platinum:
Archant. http://www.archant.co.uk/news/archant-launches-global-luxury-property-magazine/
Platinum:
The Resident. http://www.theresident.co.uk/
Registration:
Corcoran Group https://www.corcoran.com/
Delegates:
SKS Media http://sks-of-london.com
Silver:
Mayfair International http://www.mayfairinternationalrealty.com/
Silver:
Quinton International https://www.quintoninternational.com/
Silver:
Andermatt
Swiss Alps http://www.andermatt-swissalps.ch/en/
Media:
International Property & Travel http://ipropertymedia.com/
Featured
Exhibitors:
Yamaha London https://www.yamahamusiclondon.com/
RE/MAX Collection, Luxury Lake View http://agenzie.remax.it/luxurylakeview
Baker & Woods http://www.baker-woods.co.uk/
Andermatt http://www.andermatt-swissalps.ch/
Allez Francais https://www.allez-francais.com/
International Property Awards https://propertyawards.net/
Diamond Casas http://www.diamondcasas.com/
Sothebys International http://www.sothebysrealty.co.za/
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