‘Demographic and economic changes will limit the opportunity for attractive returns will limit the opportunity for attractive returns from property over the long term,’ according to John Kelly, head of investment at Inscape.
In a new paper, Investing in a second property. Is it as risk free as people think?, Kelly concedes that property has recently proved more advantageous than equities.
But he argues that returns from property in the future could be seriously affected by demographic changes. He points out that the proportion of the population in the first time buyer bracket has already peaked, and that the key 35-45 age group, which supports the family home market, peaks in the next few years.
He adds that, looking at the long term, equities have produced better returns.
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