When I sit with or speak to potential clients, the main objection I come across is “But I don’t like dabbling in the stock markets. I have no faith in them!” Well, there are investments out there that the stock markets are not correlated to, and one of these is property. I currently live in Johannesburg, South Africa, and in the time that I have been here one thing that I have found is that South Africans love investment property. If they are in the position to purchase a second property (after the family home!) then they will. Any mortgage will typically be covered by the rental income and the property value will usually increase in line with inflation that can at some point in the future be sold to realise this capital appreciation. But what is out there on the international stage?
“I like the physical aspect of bricks and mortar.”
Well, not to worry! As a company, Austen Morris Associates has access to property investments with specialist global institutions that assist investors in building property portfolios in markets that will provide medium to long-term capital upsides with solid yield potential. These institutions are not fund advisors, but instead help investors in buying physical property and assisting with all levels of the purchase process including acquisition, mortgages, subsequent lettings and any property management.
We currently have access to investment properties in the UK (London, Manchester, Leeds and most university cities), Germany (Berlin), Australia (Sydney) and the USA (New York & Chicago). Instead of focusing on resorts or the lifestyle features of properties we look for institutions that concentrate purely on the investment fundamentals that will drive yields and capital growth over the properties purchase term.
These fundamentals include both the macroeconomics of the country’s economies as well as the property’s location within certain cityscapes as highlighted in the above country/city listings.
“I like the idea of property as an investment, but I want something very streamlined”.
Austen Morris Associates listened to its clients and prospects, and we looked for property investments that completely take the hassle out of owning physical property ownership. We have current clients that like a non-stock market index correlated investment to complement the other investments they have with us.
Austen Morris Associates works with one of the largest land investment institutions in North America which provides a unique offering. This institution’s land investments are based around dirt! That’s right, actual dirt. When it comes to building residential or commercial estates there is a process from the moment the land is bought to when the last brick is laid.
The institution we work with specialises in a certain portion of this overall development process and the raw land purchase via investors and then they handle the concept planning stages i.e., utility infrastructure, planning applications, preparation for development. After all of the above parts in the development process come together, then the land is ready for reselling at a vastly higher price to a building developer than the initial land was purchased at and the developer then is in a position to do exactly what he does best, and that is build the property. Our clients exit the investments at this stage when the developer buys a ready-to-build plot of land.
So, will the stock markets have any impact on property?
The main answer is no, as house prices do not rise and fall each day as the markets do. But when there is a recession, like the global crash of 2008, then obviously house prices drop. You must remember that the price of a property is only the value that the owner places on it!
Austen Morris Associates specialises in helping individuals reach their personal financial wealth targets, and there is no one investment that fits everyone.
If you would like an introduction to Austen Morris Associates and how we can help with many investment options, then please do contact us, at https://austenmorris.com/contact-us/
** Austen Morris Associates Africa (Pty) Ltd is an authorised financial services provider, FSP Number: 43758