Residential Properties
The tangible characteristics and aesthetics of owning a property can be appealing, even to a sophisticated investor. There are limited barriers to entry to the residential property market.
Low property prices, coupled with readily available finance has meant residential property investment is open to the majority of investors. Majority of return is provided by capital growth, and is therefore dependent on the strength of the housing market.
Given uncertainties over state and employer funded pensions, residential property is seen as an effective way to save for retirement. Bricks and mortar are easier to understand than other financial instruments. Interest payments on loans used to purchase property is deductible against rent which can make property investment tax efficient.
Quality benefits of residential properties
