Why choose Property as an Asset Class?

There are various types of investments; stocks (company ownership), bonds (loans to governments or businesses), mutual funds (pooled investments that diversify holdings), cash (including high-yield savings accounts) and commodities (raw materials like oil or gold).

At High Raise however, Real Estate (physical property) has always been the most interesting form of investment as not only does it have an income component, over the medium to long term, it can act as a good diversifier and hedge against inflation. Perhaps most importantly however, its value can be determined by you and I.

It is a tangible, 3-dimensional, 'real' asset. Whilst that may bring inherent risks such as maintenance, health/safety and security that commodities do not possess, it also brings an exciting quality due to its tactile element - it has utility and can be visited and inspected, unlike an invisible stock. Property, unlike securities, cannot be placed it in the bottom drawer before being sold, it must be owned and managed with a specific skillset, 'Asset Management'.

Property is not centrally researched and there are no brokers notes or exclusive software programs with comprehensive market information as per the stock market, so the only way of understanding worth is by owning it, or at least by working for those who do. Having worked in-house at Institutions, Funds, Propcos and Family Offices for over 20 years with combined portfolio value is £30B+ we have had access to such data and have therefore acquired a deep understanding of markets, values and trends recognising where the demand lies. Due diligence is key which is why contacts and experience are so crucial. Understanding the credit worthiness of a tenant for example, or where we are within the letting or investment cycle is paramount to striking the right deal at the right time, and that's fundamentally where we add the most value.

Unlike a bond, stock or commodity, with one deal, an enhancement to a building or by securing the right tenant, we have the capacity to maximise the value of an asset overnight.