Is it the right time to invest in property?

When the private property bubble finally burst during 2007 it also burst in the commercial property sector, but far worse. The average price of commercial property fell approximately 40% from its peak and the decline only started to level out during the summer of 2009. However, in the short term it cannot be expected that prices will start to grow at the same rate as before the financial crisis and prices will not recover to pre-crisis levels for some time. We are now living in a different world; where banks are less willing to lend and therefore are not fuelling absurd asset prices.

Nevertheless, opportunities do still exist to invest in direct property funds, which have a diverse portfolio and high profile reliable tenants to generate steady returns.

There are still many issues facing to commercial property sector and it would be naïve to believe the sector is fully out the of woods yet. Conversely, by purchasing commercial property funds at this reduced value, in the long-term (7-10 years), it could generate high rates of capital appreciation and growth in rental profits.

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