Following the pandemic, prices and the valuation of real estate deals have decreased. Working sites have been closed and no new properties were released. Both sellers and buyers have been cautious. Thus, the spring property market got side-tracked.
It’s now the height of summer and in this climate, Linear has chosen to expand their property division. Why? Victoria Farrar, Head of Property for Linear Investments explains why and the new business opportunities that can be found in this uncertain landscape.
‘The market is very busy and challenging. I have been talking to my peers and there has been a chorus people saying the same thing. The market is busy. Yet there are not very many deals being closed’ Farrar explains.
However in light of this, the market is starting to show slow signs of rebounding. The Financial Times reported that Eurozone mortgage lending rebounded in May, following sharp falls in March and April.
In the face of hard times, we are forced to think differently and innovate. ‘Usually property and finance don’t tend to go hand in hand – although they should. Property people like to invest in bricks and mortar. Finance people like to invest in stocks and shares’.
However, at Linear we have decided to be creative and different in our approach and place both of these sectors under the same roof. Linear have access to a huge amount of access to clients, including high network individuals, family offers, private banks. These individuals want to be working with our brokers and our team. They don’t want to be going to other agencies or brokers. They would rather invest in our team, expertise and our network. We have essentially joined the dots and reduced the amount of people involved in the process when it comes to creating a deal. This solution provides Linear’s clients with an opportunity to interest in direct property investment.
The addition of property investment to our portfolio offering is advantageous to our clients. Property investments can make money through appreciation, rental income and profits created by any business activities that take place on the property. Investing in property can be advantageous as it can provide stable and passive income and diversification to a portfolio, as well as tax advantages. In terms of diversification, real estate has a low, or even negative correlation in comparison to other big asset classes. A portfolio of diversified assets can reduce portfolio volatility.
If you would like to learn more about Victoria Farr’s role as Head of Property for Linear, watch her interview exchange with Kate Horne from Linear Media here