Property investing is still an attractive option despite an anticipated downturn in prices due to the pandemic, according to Sourced Capital.
Research from the peer-to-peer property lender showed that house prices have risen by just 43.3 per cent in the past decade. However, this varies across the country. In London, house prices have increased at almost double the UK average since 2009 (83 per cent) and parts of Northern Ireland have seen prices fall by 10.6 per cent.
Sourced Capital also contrasted property with different assets. It found that investors could expect a better return from property than the majority of precious metals.
However, even better returns are provided by so-called dividend aristocrats – firms that have paid and increased their base dividend for at least 25 consecutive years.
“Like all areas of life at the moment, investment has taken a hit but while times are tough at present, crisis always presents opportunity when the dust does settle,” said Stephen Moss, founder and managing director of Sourced Capital.
“If you’re thinking of investing now, these are a few of the array of options that have proved to be consistent in the long-term and while some are more turbulent than others, investing should always be done with a long-term view and across a variety of categories to maximise profitability and reduce risk.”
Investing in precious metals can bring varied returns depending on the commodity of choice.
Over the past decade silver and gold have seen an increase in value of 10.6 per cent and 43.1 per cent respectively.
Meanwhile those branching out into palladium in 2009 would have seen a huge rise of 470 per cent.
However, stock prices for platinum have dropped by 28 per cent over the past 10 years.
‘Dividend aristocrats’ are perhaps a safer bet. Investing in financial giant Cincinnati Financial just a decade ago would have seen a 312.4 per cent return today.
While there are a wealth of ‘dividend aristocrats’ to choose from, in the current crisis, consumer staples have seen a huge surge in demand, largely due to panic buying in anticipation of a shortage.
Historically, Coca-cola, Colgate-Palmolive and Procter & Gamble have seen the longest string of dividend payouts at 56 consecutive years.
When it comes to returns, Coca-Cola has seen a 108.5 per cent increase in stock price, followed by Procter & Gamble (104.3 per cent) and Colgate-Palmolive (96.7 per cent).
However, Sourced Capital has highlighted two alternative options that may suit the current climate better for an investment, healthcare superpower Johnson & Johnson and UK-based alcohol and beverages company Diageo.
Over the past decade Johnson & Johnson has seen a 133.5 per cent increase while Diageo which has seen a rise in stock price of 183.6 per cent.