I would like to share with you an article I read recently in Tenerife News – the leading English newspaper provider in the Canary Islands. The article outlines the benefits from investing in the property market even in these troubled times.
I will share with you the conclusion of the article but it is well worth reading the whole article, by Financial Correspondent – Blevins Franks.
In times of heightened volatility and greater uncertainty, it is even more important to maintain investment discipline. In particular, diversification ‘ across asset classes, regions, investment styles and securities ‘ maximises the chance that investors will participate when asset prices recover. It can also provide some protection should some asset classes experience further falls.
A globally diversified REIT fund offers the opportunity to obtain exposure to non-domestic markets, which can offer varied return characteristics. Real estate cycles in different markets and sectors are driven to a large extent by local factors such as gross domestic product growth, taxation policies and government initiatives. A globally diversified fund therefore provides greater stability for investors and a wider opportunity set for active managers than would be available in a single market/region.
If you have Real Estate as part of your portfolio, this is the time to maintain investment discipline; if you do not, perhaps this is the best time to take a closer look at this asset class.
Our top locations for investment properties:
- For properties in Tenerife, click here.
- For properties in Cape Verde, click here. If available, view the Due Diligence packs provided that outline estimated ROI. e.g. Our 2 bed apartment, Dunas Beach Resort, Sal, Cape Verde.
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