Diversified Investment In UK Property
If you invest in property then you have already been told to diversify. Diversification is simply spreading the risk. The idea is that you have a hedge if one sector goes bad. The better part of the idea is that you have a better chance of making more money if you have a portfolio that includes as many different types of real estate investments as possible.
You want to put money in commercial, industrial, and residential property. You reduce your risk of catastrophic loss by spreading your investment across a larger geographic region. You are also attempting to balance taxation with gains.
A large majority of people who seek to a diversified investment in UK property use a fund. A fund offers the option of having a variety of different types of properties preselected. The risk here is in the predictive ability of the fund manager and analysts.
The residential market in Britain has garnered a lot of attention from government and investors over the last decade. The number of people needing affordable homes is much greater than the number of available homes in the United Kingdom. The high cost of ownership and management of rental properties or a housing development has prevented new construction to a great extent.
One of the newer and most profitable options for diversified investment in UK property is the Brownfield. A Brownfield is a property in a once industrialized sector or an inner city property that has basically been abandoned. The trend has been for people to move outward from the city.
Government programs have been established that encourage development of housing in Brownfield areas. These programs make the approval process faster. The programs also provide funding for infrastructure, arts, education, and other amenities that make the areas attractive to new inhabitants.
The investment opportunity has a much higher rate of return than funds or property ownership. An investor can expect to receive a 25 percent return on invested capital per year. The investor group spreads the risk by entrusting the funds to a company that is an expert in selecting those Brownfield properties that have the best potential for a sale or quick development.
The investors do not have any of the risks of ownership in Brownfield properties. There are no taxes for the properties involved. The concept is totally a hands-off approach for investors.
The success of the process relies on the expertise in-house personnel in finding optimal properties and engaging local experts in any technical field necessary to make the acquisition and sales take place rapidly. Local governments have an incentive to make the deal happen as they see a new tax base and new jobs created.
Brownfield as a diversified investment in UK property deserves serious consideration. This kind of return is a hedge you cannot afford to pass up.
Contact Highgrove Consulting (http://tinyurl.com/ya7txza5) for the details about Brownfield as a part of diversified investment in UK property.