The tendency for investors to allocate too much of their capital in their home markets is called domestic bias and is a well-known phenomenon. For U.K. investors who’ve stuck with indigenous equities in recent years, this proclivity has cost them dearly.
The U.K. investment industry manages about 8.5 trillion pounds ($11 trillion), more than three-quarters of which is on behalf of local customers, according to figures compiled by the Investment Association, a trade body. For the past five years, the geographical asset allocation of the group has barely budged, and domestic holdings have remained stuck at about 30%, compared with 23% in Europe and 22% or less in North America.
That ignores a significant shift in how important — or unimportant — U.K. stocks are to the global equity market. While British equities have remained the third-biggest geographical component of the MSCI World Index, their share has decreased dramatically, to
Renovation can increase the value of your property investments
By: Nesa Rahmat/
Image credit: Grant McLean/Flickr
Getting ahead in real estate investments is not just about buying properties – the most strategic move for you may be to improve the value of a property you already own, even your home. If you are happy where you are, renovation can be a sound financial strategy. When you renovate your own home, you win twice – once when you enjoy the benefits of a better home, and once again when you sell the home.
When it comes to resale value, however, not all renovations are created equal.
Let’s look at an example. Suppose you live in a landed property and fancy a hot tub on your back deck, and decide to invest $10,000 or so. Will that add $10,000 to the value of your home? Likely not. The truth is, not everybody