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Long Income Property is a relatively recent sector that is well placed to provide stable income yields at a time when political and economic uncertainties threaten to fuel volatility and struggling capital values in the wider property market. Intelligent Partnership report have published a 60 page sector report focused on this asset class, which was, until recently, the reserve of pension funds and other institutional investors. The intention is to give advisers and financial planners, an easy to read, CPD accredited resource that explains the strengths of Long Income Property for their clients.
Key Findings:
- Long Income Property targets overcollateralised ground rent leases of 60 years + and long leases of 15 years + with strategic importance to their tenants
- The continuing low interest rate environment and gilt yields make risk/return profile of Long Income Property very favourable
- Long Term outlook meant LIP was hardly effected by Brexit property volatility
- Long Income Property funds target modest performance of perhaps 4%, but are capable of doubling that
- Strong inflows into Long Income Property funds were seen throughout 2016, particularly from pensions looking for secure income