Property
What are Property Investments?
In most cases this means commercial property (such as shopping centres and office blocks) rather than residential property, however on a smaller scale you can look to hold residential property both as your main residence and / or buy to lets.
Types of property investment
You can invest in property in various ways, the most common are direct holdings such as your main residence or investing via an investment company in a property fund.
The role of property in a portfolio
Property has features of both equities and bonds - it can generate income, like bonds, via the rental income and it also provides the opportunity for capital growth, like equities. Commercial property works well as part of diversified portfolio as it doesn’t react in the same way as bonds and equities to changing economic conditions, so the addition of commercial property as an asset class can help to create a well rounded portfolio.
Benefits
- Potential for higher returns over the long term
- Provide income through rental payments
- Provide potential for capital growth
Drawbacks
- No capital guarantee
- Value can fluctuate
- Illiquid asset
To find out what type of investment is best for you, it’s important that you understand your attitude to risk.
Visit the Guide to Investing and Risk pages to find out more or take our simple questionnaire and see examples of the types of funds that may meet your needs.
Assess your attitude to risk - take our questionnaire
To find out more about any of
the services we’ve mentioned
simply:
- Contact your SFS Financial Adviser
- Call a member of our Client
Help Line on 0800 137 832 - Visit your local Skipton
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arrange an appointment with
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