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Jupiter warning on move to buy-to-let investment

Delaying re-entering the stockmarket or choosing buy to let as an alternative could be an expensive mistake, according to Jupiter chief executive Edward Bonham Carter.

Jupiter is concerned that 25 per cent of its current investors plan to put their spare cash into property through a buy-to-let scheme or by reducing their current mortgage.

Overall, 36 per cent are adopting a cautious wait and see approach to the stock-market, only willing to put their money into an Isa if the market goes up.

Despite these findings, the research also shows that 84 per cent of current investors continue to believe that the stockmarket still has good pros-pects over the longer term.

A further 77 per cent say Isas form an integral part of their savings strategy.

The company is recommending that cautious investors take a dripfeed approach to investing in the stockmarket. The findings are based on 758 email replies to a survey conducted from December 19-31, 2002.

Bonham Carter says: “It is precisely because markets have fallen substantially that we as fund managers are seeing more buying opportunities in the stockmarket. This is something that should not be ignored by investors when they are considering their Isas. The fact that a significant number of people are looking now at buy to let as an investment alternative is more worrying since they could be buying at the top of the market and could therefore do less well than they expect should the property market drop off.”

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