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Commercial property warning issued

Investors who are pumping considerable money into commercial property at present have been issued a warning.
According to Tim Cockerill from Ashcourt Rowan, there is a chance that they will lose some of their value, the Daily Mail reports.
He suggested that a number of people have been carried away by the yields available at present, which he conceded are "quite attractive".
The expert added: "But I think the fund prices are the closest they've been to their peak for a long time. If you are jumping in now, then you may well see your investment fall in value."
His remarks come in the wake of a report from the Investment Management Association, which revealed that property was the best-selling sector in January of this year.
Recently, Kelvin Davidson, property economist at Capital Economics predicted that it is unlikely that the UK will see a significant rise in commercial property lending over the course of this year.
Commercial property partner at Lamport Bassitt John Newton said: "We are experiencing considerable activity in the commercial property investment market at present.
"This is clearly being fuelled by a quite artificial set of circumstances, namely the historically unparalleled low returns on fixed yield investments. "Another unusual feature of the current market is that many of the buyers who are active have very low or no borrowing, which makes them able to move very quickly and seize what they see are opportunities."
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