Understanding Capital Growth Funds
Funds tied to capital such as land – and not the stock market – are more affected by specific local conditions and benefit from location diversification.
A capital growth fund is any portfolio of investments that is assembled with the intent to generate an investment return. Typically, those returns are reinvested.
Of course, achieving capital growth – to sell at a price that is higher than the price paid on the investment – is a goal, not a guarantee. But the chances of success are much...
What Are the Current Prospects for Investing in the Private Rental Sector
Rental residential property has ascended to a level of importance among real estate investors due to a growing share of to-let housing properties.
The numbers that show the relationship between available housing and the growing population of the United Kingdom are nothing less than dramatic. The country’s population will increase from 63 million today to 70 million by 2021, according to the Office of National Statistics (September 2012), a stunning 11 per cent growth rate that exceeds the 7...
Choosing Capital Growth Partners
People with deep knowledge about alternative investments (land, hedge funds and so on) are capital growth partners to investors.
The goal of almost all investment is capital growth. This is as true in the publicly traded stock and bond markets as it is in alternative investments (hedge funds, real estate investment trusts, foreign exchanged funds, private equity and the like).
But because most investors are themselves not intimately familiar with the businesses and real assets they invest...
Does Capital Growth in Strategic Land Require Building Structures
Learn how building structures can affect capital growth in land.
Strategic land investments are affected by many factors, primarily in adapting to the strongest market needs in the present. Existing buildings can diminish value.
The Daily Telegraph reported in October 2012 that a jump of 1.3 percent in house prices at the end of the summer was more an anomaly than hopeful trend. The article quoted Robert Gardner, chief economist at Nationwide (which issues monthly house price surveys) as...
New UK Housing Sector Investor Advice
As institutional investors venture into the rental market after a half-decade’s absence, private investors are considering how to-let housing might work for them, too.
The news in March 2013 that Prudential Property Investment Management Division UK was growing an investment residential property portfolio signalled an important and interesting shift in both the housing and investment sectors. “The Pru” spent £140 million to purchase 500 homes from Berkeley Group, a national homebuilder; this...
The Purpose of the London Development Panel
The London Development Panel speeds public land to private development.
Land investors and homebuilders are robust participants in urban development. The LDP helps them to revitalise neighbourhoods more quickly.
Because of the impactful housing shortage in the UK, the Government has adopted a scheme to speed the sale and development of underused, publicly owned land to private investors, who will then build much-needed homes. The London Development Panel (LDP) exists solely to expedite...
The Implications of Institutional Investors in Rented UK Housing
Institutional investors now back in UK residential rental housing: What does it mean?
Investors such as Prudential are now buying to-let residential housing in England. After decades of absence, the housing crisis seems to be the driver.
The quadrupling in the size of the private rented housing market in the UK over the past decade reached a watershed moment in 2013: institutional investors are now getting back into quality rental housing ownership. Prudential PLC ended a 30-year absence...
How Do Private Investors Work with the Homes Communities Agency
Government involvement in housing is typically centred on social housing. But private funders also work with the HCA on investment properties.
The purpose of the Homes & Community Agency (HCA) is to encourage development of private housing that is affordable and which enriches local communities. Historically, funding has come from the National Affordable Housing Programme, however part of the Agency’s work is to marry private investment with its projects. Current objectives include working...
What in the UK Economy Attracts Foreign Investors
There are specific reasons that foreign investors are attracted to the UK economy.
Financial instability in the Eurozone has driven an influx of European and other foreign investors to the UK. Buying a second home in London is a common tactic.
A handful of cities around the world would like to lay claim to being the centre of the known universe. New York City has long positioned itself as such, while the emergence of the Chinese economy might give either Hong Kong or Beijing that title....
UK Housing Sector Offers a Variety of Opportunities for Investors
With the 2008 property bubble burst sufficiently in the past, the demand for housing – particularly rental – provides new means to grow income and assets.
There is increasing interest on the part of investors in housing in the UK. This is evident in statements from a multi-asset manager at Henderson Global Investors to a personal finance columnist at The Telegraph. Noting that property funds now yield about 4.5 per cent, surpassing gilts and corporate bonds, he said, “It’s a valuation...