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Commercial property could be attractive to investors in uncertain times

On Dec 29 2011
Tagged as:
  • Commercial Property


The shaky financial situations experienced in Europe over the latter half of this year have had a ...

The shaky financial situations experienced in Europe over the latter half of this year have had a notable impact on the confidence of local markets - leaving investors uncertain of where to turn.

In particular, the daily movements in the stock market and changes to many soft commodities have left even seasoned wealth creation specialists speculating on how to best protect their funds.

One leading firm has suggested that the New Year brings with it an opportunity to redistribute finances across a balanced portfolio, including certain areas that were previously "overshadowed by equities" in an effort to adopt a future-proof stance.

While cash and bonds are sure to make an appearance, so too is the inclusion of residential and commercial property - with investors seeking to benefit from the stability and permanence that business holdings can offer.

Chief executive of Centuria Capital John McBain explained that many markets would see a shift from reward-oriented decisions to risk-averse investment over the short to medium term.

McBain asserted: "Instead of just sitting in cash as they have been, investors will realise that it's time to make some considered decisions and return to a more defensive and balanced asset allocation.

"For investors balancing their asset allocations more evenly, the property and bond market will benefit, particularly as falling interest rates steer them away from cash and make direct property ... a more attractive long-term investment return proposition."