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Life Beyond the Budget. …
June 23, 2010Article by Ray Withers
As we have been telling you over the past few days, the present climate is actually good for property investors, especially our middle to higher income client base in ‘mass-affluent’ Britain. At first glance, this might seem counter-intuitive. But the reality is that most of our clients had no wish to sell in the short term and will be breathing a sigh of relief that they will not be pressurised to do so. In many cases, their exit strategy is long term: increasingly, our clients want to live abroad, at least eventually. Their rental assets and holiday homes, both in the UK and overseas, are a means to that end.
Those who intend to stay in the UK for the medium or long term also wish to consolidate and increase their property portfolio and will be pleased to have escaped relatively unscathed. As Liam Bailey, head of residential research at Knight Frank told today’s Guardian, ‘the arguments for property investment still look strong’.
Caution is not the whole picture, however, if by caution we mean not wanting to try new things! On the contrary, there is a strong appetite for new types of investment – products that do not fit the conventional picture of property investment. Clients are looking for products that yield good returns, are reliable, offer a clear exit strategy and have a positive social and environmental dimension.
Property Frontiers is now in a great position to investigate and market such products through its subsidiary Eco-Investments. Clients are being invited to invest in sustainable bamboo and teak cultivation, for instance, or Millettia biofuels in Australia.
As I write, we are about to launch our latest eco-product: Farmland Argentina. It is an income-based investment yielding eventual returns of up to 160%, in the breadbasket of South America, a country that has turned around both its image and its fortunes over the last ten years. Farmland Argentina is a creative and positive opportunity for middle-income investors. It shows that there is life beyond George Osborne’s budget!
In the past week we have also launched No 1 Knightsbridge, an exciting new apartment complex in Istanbul – the chance to buy into a booming property market where there is an exceptionally high demand for rental accommodation all year round (unlike the more traditional Turkish holiday resorts). Interest from clients has been very high. They recognise, as we do, that Turkey is a rising economic giant and that Istanbul is a city of great beauty and ancient history, as well as being modern, forward-looking and dynamic. It will be a centre of opportunity for years to come. Last, but by no means least, we are exploring an innovative way by which overseas nationals and British expats can invest cheaply in the UK property market: follow our Blog or follow us on Twitter, Facebook, LinkedIn for more details!
Written by: Aidan Rankin