How to cope with boom and bust

Article Abstract:

The United Kingdom housing market has seen some strong price rises, but prices depend on the locality, and luck is an important factor. Investors who have seen good returns have also usually had to redesign or renovate property. Average house prices have risen to some 86,000 pounds sterling in 1999 compared with a little over 70,000 pounds in 1989, but residential real estate performed poorly in the 1990s, and prices have fallen in some locations of the UK. There are long term factors affecting the market, such as a reduction in tax privileges for home ownership, and greater awareness of the risks of mortgage debt.

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Come on in

Article Abstract:

Foreign investment in United Kingdom commercial real estate increased to record levels in 1997. Germany was the leading foreign investor, followed by the US, while Japanese investors were absent. Central London is becoming less dominant, with investment in Greater London increasing by over 100% and investment in provincial locations up by 70% in 1997 compared to 1996. Investment from abroad may not be as high in 1998 as in 1997, but the UK is likely to continue to be an attractive market due to low costs for entry and exit, lease structure, data availability and transparency.

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New homes for your money

Article Abstract:

UK house prices are rising more rapidly than inflation, but investors should not that the rise varies according to property type and growth in prices is not spectacular. Prices for homes for first-time buyers are dropping, while premium homes in central London are seeing high price rises. Investors can select shares in companies involved in this market, or use collective investment vehicles. Commercial real estate is also affected by variations within the market, and investors should choose shares with care.

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