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ARTICLE · 14 APRIL 2016

Crisis-Proof Investments: Low Yield Property Is More Profitable

Investing in property is a profitable and dependable venture but rising interest rates and an unpredictable global economy are making investors apprehensive.

GlobalFinance and Banking
Daria Buchneva
Daria Buchneva

Investing in property is a profitable and dependable venture but rising interest rates and an unpredictable global economy are making investors apprehensive. There are lessons to be learned from the '07–'08 crisis, especially from those who are still profitable. What many first-time investors don't know, is that yields are the key to their success.

Key points
  • Residential property has lower yields but rapid price growth.
  • Retail property prices grow faster than office and industrial real estate.
  • Low yields = fastest price growth among properties of the same type.
  • Moderate yields in low-risk locations have higher price growth.
  • Low-yield real estate loses the least value during market crises.

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