Why is it so important to build a balanced portfolio?
A balanced portfolio will perform well in every market. You need to prepare yourself for every eventuality, for example. If there is another fall in house prices, people are likely to look elsewhere for places to hedge their savings or pensions and hopefully provide them with an income. This will therefore push prices up in the relative sectors, as demand increases people will look to charge more of a premium.
As markets become more volatile than ever, you should be looking to put your hard earned savings and pensions into a range of products where the value is governed by an increasing demand and a decreasing supply, during varying economic climates.
How about UK farmland? Well let’s get one thing straight we cannot create more land, neither can we build upwards, agriculturally. UK Farmland has been growing in value by 15% pa over the past 3 years where other investments have been decreasing in value.
We always need land
Another point is that if the UK housing market was to recover there will be uplift in demand for farmland yet again as housing developers start to look for land to build on. Putting further pressure on price rises as resources are diminished. Now if this happened and you were lucky enough to purchase in an area where planning gain is possible for further housing, this could greatly increase the value of your land!
Not only can alternative investments provide safe returns in uncertain economic times, many of them can provide great taxation benefits such as capital gains and inheritance tax relief.
There is a vast array of alternative investments on the market at the moment and without specialist advice you may not end up with a balanced portfolio at all.
So speak to the experts www.freshinvest.co.ukBack to news