Forbes.com recently released an article outlining the principals behind the exodus from Hedge funds to property investing in 2006.  The world’s riches are learning what many small investors have known for years, property and equity investing promises equal returns, and lower risk, than other investments.

The equity markets are full of new properties, and the performance is good in most areas. Last year, 2006, saw the property market increase 24pct, up from 16pct the previous year.

Nick Tucker, head of UK and Ireland Global Private Client group at Merrill Lynch.

'It was not scepticism, it is rather due to expectation of greater returns in the equity and real estate market,' Tucker said in the Forbes article.

This explains why the London house market is still strong, despite many £1 million homes.

It is great news for current investors.  There is always a large secondary market of investors following where the big investors put their money.  There will also be many investors starting to consider the housing market after reading the Forbes article.

This should feed the UK housing market for another year, despite local predictions that the housing market is set to slow down, the foreign money should create some pleasant surprises in the UK market.

Most people are unaware of the housing market’s scope in the UK.  In the 2006 boom, only 970 000 homes sold, representing a small portion of the market.  There is still ample room for trading and building wealth.  Of this, only 12 000 were repossessions.

Share This