Financial advisors 'encourage investment by commercial mortgage holders'

01 June 2010

Written by Gavin Elley

Independent financial advisors (IFAs) may be more likely to suggest investment to commercial mortgage holders than residential portfolio owners, new figures have indicated.

According to a survey commissioned by Reita, there has been an increase in the number of experts that would encourage investment in commercial property, with 66 per cent of IFAs predicting a rise in prices of up to 14 per cent in the next year.

In October 2009, 59 per cent of respondents thought it was likely the asset would grow in value, while only 24 per cent anticipated a gain in price when questioned in July 2009.

The confidence of financial experts also seems to be strengthening with 41 per cent of IFAs saying they felt certain when giving advice compared with 33 per cent in October.

Respondents feeling less sure of their convictions dropped in number from 59 per cent in October to 44 per cent in the latest survey.

This follows recent research by the Investment Property Databank, which stated that a growth in the commercial property capital continued to increase in April, gaining 0.8 per cent.

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