UCB predicts property investment boom

Ramesh Sharma

January 21, 2006

Research conducted by UCB, which took into account the views of 523 brokers, revealed 55 per cent believed property would yield greater profits than shares over the next five years, with 45 per cent arguing shares would provide a more beneficial offering.

UCB managing director Keith Astill said that taking into account the current market trends, property should provide a healthy investment opportunity. “We are expecting a drop in interest rates some time in early 2006, with house prices remaining in the zero to 3 per cent range over the year. The longer-term picture is less clear, but the research shows that brokers are obviously expecting property to outperform equities over the next five years,” he said.

However, while Harry Katz, principal at Norwest Consultants, agreed investment opportunities would be available within the housing sector, he urged investors to think carefully about their choice. He said: “If you are rich enough then buy investment property, but outright and not on a mortgage. As most people borrow to buy property, it isn’t theirs until they redeem the loan.”

“My clients will be investing across the board, in equities, fixed interest, commodities, cash and property. Property outperforms equities in some years, but overall it’s a closer thing than many imagine,” he added.

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