PracticeConsultingDoubts raised over second property investments

Doubts raised over second property investments

Investors considering a second property as an alternative to putting their savings into shares should look before they leap, the Abbey National's wealth management company is warning.

‘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.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer