Comments on: Five reasons to buy commercial property

By: asset allocation review part 2 and passive investment « Simple Living in Suffolk

Wed, 22 Dec 2010 19:52:31 +0000

[...] portfolio so I can afford to indulge my prejudices and ignore this asset class. I may consider commercial property via REITs though it’s another asset class that I don’t understand so I may go with [...]

By: SimplifiedTaxes

SimplifiedTaxes — Tue, 23 Mar 2010 14:00:57 +0000

I agree on the pointers you have mentioned in buying commercial property. The value might depreciate probably the building was abandoned but a good developer should know if they see a good investment. They can buy the property at a lower price, come up with good plan in developing the property and good marketing strategy and their the goes the income. .-= SimplifiedTaxes on: Top Tax Return Mistakes =-.

By: From Foreclosure To Fantastic – The Ben Cope Story

From Foreclosure To Fantastic – The Ben Cope Story — Fri, 03 Jul 2009 10:13:33 +0000

[...] Five reasons to buy commercial property [...]

By: The Investor

The Investor — Wed, 24 Jun 2009 21:44:27 +0000

Good points Niklas.

I like index linked gilts and would probably buy (via the iShares ETF INXG) if so riskier assets (equities and property) didn’t look so attractive right now. The yield above the inflation rate on linkers is horridly small – the price you get from security but I believe it has been higher in the past. (Certainly the proxy of index linked national savings certificates has been). I plan to round up inflation hedges in a post soon.

By: Niklas Smith

Niklas Smith — Wed, 24 Jun 2009 14:48:53 +0000

"But right now, I think the inflation risk makes most bonds look very unattractive, particularly Government bonds." I think you're right to argue that property's value as an inflation hedge is a strong reason to buy, but to be fair there are other forms of inflation hedges. The most obvious are index-linked bonds. UK index-linked gilts track RPI rather than CPI which is an added bonus - once house prices stop plummeting RPI will probably equal or exceed CPI. Gold is meant to be an inflation hedge but has in fact been outperformed by index-linked gilts since they were introduced in 1981. In my opinion index-linked gilts and commercial property are both superior to gold because they have a revenue stream, which acts as a guide to valuations as well as providing compound interest.