Property regarded as one of best investments, research suggests

Buying property is regarded as a better investment than many other including savings plans and buying gold and shares, research suggests.

A holiday home is as valuable, if not a greater investment option than a pension or savings plan, according to an annual survey carried out by holidaylettings.co.uk. It found that 26% of Holiday Lettings advertisers said that their primary reason for purchasing a second home was as an investment, instead of a pension or savings account.

It also found that more than half, 52%, said their primary reason for letting the property now was out of a need to cover the running costs, 26% are letting the property to make a profit while 22% opt to let it because they do not use it enough themselves.

‘In the height of the property boom when the majority of today’s holiday home landlords purchased their second homes, property was indeed an attractive long term investment and it is therefore no surprise to see that around a quarter of our customers made that choice,’ said Kate Stinchcombe-Gillies, spokesperson for holidaylettings.

‘What has changed is the increasing need for the property to pay for itself, either to pass time until the market revives and a profitable sale can be made, or to ensure that the home doesn’t cost when it was intended to fund a future lifestyle. What these accidental landlords support in the meantime is growing demand for private rental holiday accommodation,’ she explained.

Meanwhile the latest research from the Worldwide Property Group reveals that property is believed by many, to be the best place in which to invest your hard earned cash. Results from the company’s latest confidence tracker survey show that a huge 72% of people who took the survey currently believe property to be the best investment, making it easily the most popular choice. Gold was in second place at 16% whilst shares trailed in third place with just 11% of the vote.

The survey, which covers several aspects pertaining to the property sector, also revealed that 77% of respondents consider this to be a great time to invest in UK property, with 64% also of the opinion that many overseas property markets represent a great opportunity to invest right now.

In fact, just over half of the people who took the survey are currently considering buying a property overseas with the USA and Caribbean by far the most popular regions. Spain and France also ranked highly. It has consistently produced strong returns for investors over the longer term and during a downturn there is even more potential to achieve great returns,’ said Kevin Wilkes, Managing Director of the Worldwide Property Group.

‘The United States is currently a very appealing market with some incredible bargains, especially for those people who can afford a cash purchase. With property often selling at below build cost, this is a market that deserves investor’s attention. My tip for 2011 would be to make this the year that you invest. Don’t leave it too late and miss out on some of the best opportunities we have seen in decades,’ he added.