Investors tipped to take more risks once vaccine is rolled out

LandlordInvest chief executive Filip Karadaghi has predicted that investors will take more risks once the vaccine is rolled out and confidence returns to the market.

Karadaghi’s comments came after a Butterfield Mortgages survey revealed that 35 per cent of investors with portfolios worth over £10,000 have already shifted from high risk to low risk assets this year.

Read more: Vaccine sparks return of SME confidence

It is believed that investors have prioritised security over returns during Covid-19 induced uncertainty.

Over half (59 per cent) of investors are prioritising safer assets next year due to the coronavirus and Breixt.

The survey also revealed that 47 per cent investors do not plan to make any investment decisions until they can physically meet with financial service providers and advisers.

Karadaghi said that a risk-adverse reaction is normal in uncertain times and he expects investors will take more risks once the vaccine is rolled out.

Read more: Peer-to-peer lenders ‘optimistic’ Covid vaccine will boost sector

“Investors switch to what is more secure, and you’ll often see their reactions are delayed after events,” he said.

“It’s evident the vaccine should be coming out and life should be returning to some sort of normality. Once it’s rolled out confidence will return, and investors will take more risks then.

“At the moment investors are still switching to safer places for their assets which does not makes sense as we see the light at the end of the tunnel. A lot of lenders are currently reluctant to lend.

“We see the vaccine as a turning point this year and are taking more risk and doing more deals, why should you wait until times are good again?

“We’re thinking the worst has passed and we still have quality underwriting and the kind of loans we do should sustain any type of crisis.”

Read more: SMEs planning ahead with support from government loan schemes