
Why Property?
Year after year, the annual 'Rich Lists' include people who have created or added to their wealth through buying property. As an asset class it has consistently outperformed all other types of investmentand although the general public has limited access to institutional funding for traditional investment types, property offers one of the few opportunities to borrow funds simply and inexpensively to invest in higher value assets, which in turn generate higher returns on investment.
In fact over the last 20 years residential property investment, geared at 75%, has outperformed other assets, including the FTSE All Share, FTSE 100, gold and cash on deposit by a factor of close to four times.
This graph shows the relative returns achieved from investing £100,000 in various assets over a 20 year period. The underlying fundamentals pushing this outperformance are those of supply and demand. There is an ever growing demand for property. As a nation, we are living longer, marrying later and are more likely to live alone than ever before. Add to this underlying population growth and a degree of inward migration and there is unprecedented demand for property, at a time when housebuilding is at an all time low (source: The Barker Review of Housing Supply).
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