Simon Morris: Buy to let or Property Fund?

London, UK - It’s been reported that UK property prices have fallen slightly in the last month, and industry commentators are wondering whether the market will cool further in 2015.

London based property investment advisor Simon Morris believes the property market may actually show a modest rise next year, not large gains of the past, but a rise all the same.

Whatever the market does, property is the longer term investment of choice for many people, but it can be tough, and there’s more to consider with property investment than the level of house price growth.


Simon Morris, Author of the Guide to Property Investment Options explains: “Bricks and mortar property is a highly illiquid investment, even a London property located in an up and coming area can take months to sell once the actual transaction times are taken into account.”

“Liquidity problems inherent in being a property owner might not be a problem while the market is rising, but if the wind of change blows, or you suddenly need money in a hurry, there’s no quick way of selling up bricks and mortar stock.”

Estate agents fees can also be an issue for some, but this is a minor inconvenience compared to the stamp duty and other fees payable when purchasing a property.

The tax man also treats property gains very differently to other investment income (shares attract a tax rate of just 10% on dividends (basic rate), property income is taxed at the income tax rate of 20% (basic rate).

Property Funds

While people continue to cue up to invest in bricks and mortar property there are other ways to take advantage of a rising property market without having to deal with problem tenants, the tax man, estate agents or stamp duty – Property funds.

Simon Morris says: “A growing number of informed investors are using the advantages of investing in property funds, sometimes as part of an ISA investment.”

The advantages of property funds include:

  • Liquidity, you can sell the fund at any time, just like any other equity
  • Planning, some funds offer a fixed return on your investment
  • Lower fees, and using your ISA has tax advantages

Take Advice

When making any investment, it’s always wise to take impartial advice, whether you’re buying a bricks and mortar property or looking at property funds as a way to take advantage of the rise in property prices.

Simon Morris, uses his specialist knowledge of the commercial property sector, to advise UK property investment funds on how to maximise profitability. He has the following advice: “Taking gains from the property market isn’t an easy as many believe. If you’re invested in bricks and mortar property one problem tenant, an unforeseen structural issue or a drop in the market can all lead to a financial headache.”

“Gains can still be had from the market without actually owning property, or being a landlord. Investors are always advised to take advantage of impartial advice before making any investments, and I’d advise looking at all the options available when deciding to invest in the property market. That includes looking into property funds as well as bricks and mortar stock.”

For more information on property investment vehicles please read the Guide to Property Investment Options

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Matthew Kaye
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About Simon Morris

Simon Morris is an independent property advisor working with Funds and Investment Companies to ensure property chosen for funds and portfolios delivers agreed return based on low risk.

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About Us

Simon Morris is a professional in the property investment industry specialising in both the retail and commercial sectors.He advises individuals on their investment portfolios with focus on low risk, high yield property investment.