During the last six months of 2006, the property market saw their biggest investments; a whopping 30 per cent were made during this time. However the Financial Services Authority (FSA) is warning investors against overexposure to property markets.
The Financial Services Authority (FSA) has also expressed concern that there may be a correction in the market, which could see investors being affected by the drop in value of their own private property and that in their portfolio fund.
Our view
We find the warnings issued by the Financial Services Authority to be interesting due to the large growth in the sector. Direct holding in residential property, we believe could be a problem, but providers are becoming more inventive with overseas property funds and more. It is also interesting to note that the Government launched the Real Estate Investment Trust (REIT) in January this year to promote property investment.