Commercial investors ''should look long-term'' - commercial mortgages

18 October 2007

Firms with commercial mortgages should be considering longer-term plans in order to safeguard their investments in light of current market uncertainty, it has been suggested.

A study from the Association of Investment Companies (AIC) has found that 55 per cent of the general public and 37 per cent of active investors believe that commercial property will continue to rise in value, despite recent troubles.

But the AIC has said that it is advisable to tread carefully in the current financial climate in order to maximise potential returns.

"Property investment companies give investors access to a wide range of commercial property both overseas and within the UK and have a closed ended structure which is particularly appropriate for property, an illiquid asset," noted AIC communications director Annabel Brodie-Smith.

"[But] further volatility is expected so investors need to take a long-term view and consider regular saving to help smooth out market volatility," Ms Brodie Smith added.

A potential interest rate cut before the end of the year, thought by many analysts to now be on the cards, would likely further boost confidence in the sector.