Real estate presents an excellent opportunity to generate significant returns over the long term, one investment expert has suggested. Jon Ainge, director of International Property Success, explained that investors who can pick up assets now at below market value will be able to look forward to "a huge uplift in rental yields" in the future. He added: "I don't really see anything that can compete with property at the moment for a reliable return on investment."
The organisation pointed out that many tenants who would like to get on the property ladder are unable to afford the high deposits required in order to secure a mortgage, with people becoming resigned to the fact that they will need to rent for longer. At the same time, rental yields in the residential real estate sector are consistently rising, giving investors an incentive to purchase these kinds of assets.
However, the recent Knight Frank/Markit House Price Sentiment Index found that many homeowners in the UK expect property values to fall over the coming year. Respondents in eight out of the 11 regions surveyed had a negative outlook for the housing market in 2012, with only those living in London, the south-east and east of England anticipating an increase in capital values.