REAL ASSETS
So-called ‘real’ assets, such as shares and property, are those which, judging by past history, are likely to give a ‘real’ return: the value of your original investment is likely to grow in line with, or above, the rate of inflation.
Investing in a real asset gives you a stake in a business or in the economy as a whole which you hope is going to grow in value. All being well, you get a return above the rate of inflation, so increasing your spending power.
Should You Invest in Property?
Investing in commercial property through a property fund can be a sound long-term investment. It can provide you with a regular income which increases with each rent review, and the possibility of real growth in value over time. The risk is that what happens in the commercial property market and the economy as a whole could mean the value of your asset could fall.
If you can afford, you might choose to invest directly in commercial or residential property, renting it out yourself or through an agency. This can bring in a good income and, again, your investment is likely to appreciate over time. However, having to find the property to invest in, surveying it, making the necessary legal and financial arrangements to buy it, and then having to deal with tenants, even indirectly, can be time consuming and difficult. Bear in mind that you will also have to account for your income from letting property, and pay tax on it. This may involve paying an accountant and other financial consultants.