Amid continuing falls in stock market prices, many wealthy people all over the world are seeing property investment as a more attractive proposition.
According to a survey by Morgan Stanley, 77% of millionaires in the United States own some form of real estate. In the United Kingdom, as the population increases, house prices are rising fast. The Office for National Statistics reported a 6.7% rise in the average UK house price in 2015, and this figure was 9% in London. The Royal Institution of Chartered Surveyors has predicted a 6% rise across the UK in 2016. With UK inflation close to zero and the FTSE 100 losing 5% of its value in the first week of the year, property is looking a good bet compared to other investment options.
Furthermore, many countries impose a cap on the amount that can be withdrawn from a pension fund without attracting additional tax. In the UK, this ‘lifetime allowance’ is £1 million, meaning that people are forced to look to alternative sources of retirement income, thus making property investment more appealing.
The UK’s second largest city, Birmingham, is a particularly attractive place to invest in property. It is possibly the UK’s top manufacturing centre, and up and coming areas include the Jewellery Quarter, where the old warehouses have been converted into apartments that are extremely popular with the city’s professionals.