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Experience Invest

Ease of exit makes property the top choice for UK investors





New research from Experience Invest has revealed that one fifth of UK investors do not carefully consider their potential exit strategies when entering an investment opportunity.

In June 2019, Experience Invest surveyed over 800 UK-based investors about how they plan and execute exit strategies and how much does the exit strategy influence their decision to invest.

The research – which was conducted by an independent research partner – asked 831 respondents who all had investments ranging from £10,000 to £10 million in total value.

The appeal of real estate

Property was the most common asset class among the investors surveyed, with 53% of those surveyed owning one type of real estate investment.

Stocks and shares were the second most popular choice, with 48% of respondents holding this type of investment. Following the top two, a significant drop to just 12% of people surveyed had invested in foreign exchange/currency, 11% had equity in private companies and 10% had invested in art.

In terms of exit strategy, 62% of respondents cited property as an attractive opportunity because of the ease of liquidation.

What assets do they own? All
Property 53%
Stocks/shares 48%
Foreign exchange/currencies 12%
Art 11%
Debt investments 9%
Classic cars/motorbikes/boats/yachts 7%
Cryptocurrencies 6%
Commodities 5%
Other 7%
Source: Exiting investments: How are
UK investors planning and executing exit strategies?

Exiting a property investment

Experience Invest’s new report – Exiting investments: How are UK investors planning and executing exit strategies? – highlights the importance of a flexible or clear exit strategy when investing.

Overall, 25% of those surveyed are currently unable to exit their existing investments however, when it came to property, this figure dropped to just 18%.

Unsurprisingly, capital growth is the most important factor for 85% of property investors when planning an exit strategy. While 73% also revealed that reliable rental returns motivated them to make their property purchase.

When it comes to alternative property types, the prospect of on-going rental returns was a major deciding factor, with 85% of student accommodation investors and 88% of hotel room investors attracted by higher than average rental yields.

Speaking about the search, Jerald Solis, Business Development and Acquisitions Director at Experience Invest, commented: “It is reassuring to see the vast majority of investors in the UK are thinking carefully about their exit strategies before making an investment. But there are still many who do not.

“In light of this issue, it is easy to understand why assets such as property – which can be sold in a relatively straightforward manner on an open market – remain so popular with investors. Nevertheless, all investments should be made with a clear exit strategy in mind; doing so will enable the investor to manage his or her portfolio effectively.”

Access the report

The findings of Experience Invest’s research demonstrates the importance of an actionable exit strategy when investing in an asset class.

The lasting appeal of real estate investment, which offers a clear exit strategy to the local market or to another property investor, has helped the asset class to emerge as the most popular choice for the investors surveyed by Experience Invest.

Simply follow the link to access your copy of the Experience Invest report – Exiting investments: How are UK investors planning and executing exit strategies?