Business & Finance Investing & Financial Markets

Investment Options for Professional Investors

If you're a professional investor then you'll probably be thinking about diversifying your investment portfolio. Professional investors look to invest between 2 and 3 times a year, and with under performing markets, they need more options. Investors are therefore asking themselves, ‘Where can I put my money?'

Stocks and Shares

The first investment option that springs to mind for professional investors is stocks and shares. First of all, this is a tough environment and in order to see high returns you will be required to do a lot of work. Read the markets, understand your stock, buy low and sell high; all on a daily basis. If you were to invest in stock and leave it for ten years, it'll probably just stay with the rate of inflation or gain up to 4%.

This can be a volatile market as well, with any political or economical permutation seriously affecting the market. For example, as a result of government spending cuts and the threat of a double dip recession, this was reflected in the stocks last year which on average were down 9%.  

Property Investments

A popular one amongst investors and up until a few years ago would've been a recommended option for professional investors. However after a market crash and stagnant house prices, professional investors are seeking alternative investment options.

Professional investors want tangible assets, and whilst property is considered a popular tangible asset to have, it hasn't performed well over the last couple of years. Again any political or economical permutation can seriously affect the market. Also this investment could cost a lot more than expected in terms of work, time and money. This is because there is duty of upkeep with property, for example, maintenance, utility bills and taxes.

Land Investment

Land investment has outperformed any other investment choice over the past 20 years. According to the The Royal Institute of Chartered Surveyors' Rural Land Market Survey, UK land has seen a 130% increase in value over 20 years and a 30% increase in just the last year.

On average UK land for sale is seeing annual returns of 8% – 12%. One of the main reasons for this is because the high demand of UK land is in short supply. With the UK facing a population rise of 7 million by 2021, and with a shortfall of 1.4 million in affordable housing, it means land is becoming a sought after commodity.

This trend is seeing huge returns on land investment, and if an investor purchases previously undeveloped land which gains planning permission, the rewards are staggering. For example, in Birmingham, land without planning permission is worth 15k in comparison to land with planning permission which is valued at 240k.

With greenbelt land often being rezoned for development in order to manage the demands of housing, land values are seen as a consistent and safe tangible asset to invest in, which can see huge returns. Speak to a UK land investment firm to see how you can take advantage of this investment option.



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