Property

There are two basic types of property; residential and commercial. Both types can be different forms of investment. However, there are key differences. Im most cases residential property is your home, the place you live in. When property prices rise then the value of your property increases but its more difficult to unlock any gains without selling your property.

Other options include equity release schemes, which are growing in popularity especially amongst older people who tend to be 'property rich / cash poor'. Its important, however, to seek advice on this area and also to review your Will if you plan to hand over your property to children.

Commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial property can include office buildings, industrial property, hotels, malls, retail stores and shopping centres. Many people look at commercial property as a viable option because tenancy contracts tend to be long term and the commercial property market tends to be less volatile than the domestic market. Commercial property funds are also much more liquid than residential property in the sense that its relatively simple to release any profits generated.

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