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Property reports and indices are often misleading

Date: 26 Nov 2015

Citywealth

Jeremy McGivern, founder of Mercury Home Search, says investment hotspots are the South American coastline and Spain but warns investors to take care because property is not a bullet-proof investment.

What should UHNW investors be aware of when buying a property?

They must be aware of market conditions in their target market. This does not just mean what is happening in the area, but also in their price range and the style of property they are hoping to acquire. They should also be wary of property reports and indices which are often misleading because they are too general.

In addition, investors must be aware of the tax regulations in each country. Although most international buyers buy for reasons other than pure investment, it is still important to structure an acquisition in a tax efficient way.

What regions do you see becoming future investment hotspots for the UHNWIs?

Some of the coastal regions of South America have some unspoilt tracts of coastline that are stunning. You can also expect renewed interest in the South of Spain. However, the likes of London and New York will continue to attract the majority of investment.

What trends do you see?

Stock market volatility will continue to push investors to the perceived safety of real estate. One of the psychological advantages of real estate is that you cannot see price fluctuations on your screen on a second by second, day by day or even month by month basis. It is also much harder to sell property as you can’t do it on a whim or at the press of a button. Therefore, property for many becomes an enforced savings scheme, although it is certainly not a bullet-proof investment.

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