Swedish property investment is a good option for strong growth during the UK recession, according to Perspective Financial Management.
Perspective has just launched a regulated property investment fund called EPH Sverige which it said offers investors a steady income and is suitable for Sipp and SSAS investments.
EPH Sverige has a minimum investment level of £10,000 and is looking to provide investors with geared net returns of at least 12% over five years and 14% over seven years, with net yields ranging from 5% to 8%. The fund will focus on pre-let residential property with some elements of commercial property.
Paul Hogarth, co-founder of EPH Partners who act as property advisers to the fund, said: “The fundamentals of the Swedish property market should provide an attractive rate of return for investors. Capital values in southwest Sweden are low, often less than the price of the land and build cost which restricts residential development in southwest Sweden meaning there is no over-supply of property. Also, as a result of state-controlled rent reviews, inflation-linked rental growth is guaranteed.
“Given the current turmoil and volatility of equities at present, the dire state of the UK property market and the general lack of exciting opportunities for investors, EPH Sverige offers a particularly attractive investment and risk/reward ratio.”