As economic recovery sets in, investors chose to invest in assets with high returns rather than the traditional safe investments namely government bonds and property.
Yet, it is thought that there are many reasons why investors should invest in property rather than any other type of assets:
- There is a constant risk of another recession.
- UK property provides high yields compared to other assets. In fact, there are parts of the UK where yields are around 10% such as Birmingham. On the other hand, interest rates are only around 0.5% in the UK and 0.25% in the eurozone.
- The UK is one of the safest countries to invest in as it is politically stable wehereas in countries where property gives higher yields such as Egypt or Colombia there is a big risk especially because investors cannot predict what may happen there.
- The government bonds are no longer considered totally safe as the notion of 'government default' has emerged recently with the Greek economic collapse.
- Gold that was also considered as a very safe store of money is no longer as it is especially after th recent decline in the world's price of golds especially in april 2013.
- Property in the UK is liquid compared to many other european countries. Smaller flats for example in UK cities are highly sellable especially in the asian market.
Featured articles and news
ICE 200 brings together transformative projects from the past 200 years - and the engineers behind them.
Dame Judith Hackitt hosts an industry summit to kick start the second phase of the review.
This article explains the Buildings Regulations completion certificate, what it is, and when its needed.
Graphene has many potential applications, but when will it start being used in civil engineering?
Increasing productivity – now more than ever as we lead up to Brexit – should be the sector’s number one priority in 2018.
Carillion's collapse causes Construction Leadership Council to delay the construction sector deal report.
Urban Heritage, Development and Sustainability: international frameworks, national and local guidance.
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.