Property investments have taken a big hit with the subprime housing crisis and the global financial mess, but property remains a solid investment. Here are 5 reasons we think property remains a solid, wise investment. Please note these are simply observations gleaned from the state of the finance markets, not solicited, official advice in any capacity.
#5: Property is not fluid in the physical sense.
Don't forget that the physical nature of property itself -- actual land and buildings, that you can see and touch -- means a lot for your investment. While it's easier to make money on investments that aren't exactly 'real' (speculation, basically), the long, slow return to a culture of personal savings and fiscal responsibility starts with an acknowledgement that simple, clear investments -- like property -- are fundamental because of their inherent un-sexiness.
#4: Boredom is actually a good thing here.
Sure, you can still make money betting on the market, and people are doing it right now. And you can lose a lot of money if you invest badly in property. But most of the money lost came from people 'surfing the bubble', in which property became tied to a belief that housing prices would eternally rise. Now that belief has vanished, and property can resume its normal, quiet, regular position as a solid, clear investment.
#3: Deals are rampant.
Sure, the financial bubble popping has been a fundamental mess for everyone. But remember how people always said property is a secure, solid, more risk-free investment, and how that was a myth in these recent years? It's become that again, thanks to falling values.
#2: It's become inherently more conservative, and thus smarter as an investment.
Although easy mortgages might not be the answer, and banks might be running from them like the plague, the point is that if you do get a home loan, you can be sure that it has been vetted much more strongly than it would have been only two or three years ago. A bank being that cautious? It means your investment is solid.
#1: It seems (sorta) like a recovery has shown up.
Finally, the fact that it seems we've hit rock bottom in terms of the economy is good news -- there's (hopefully) nowhere to go but up. Before another bubble arrives -- and one will -- you should use the prevailing financial winds as your guide: make smart, future-proof investments that are bubble-proof. If you don't expect miracles, you'll at least get results. - 29969
#5: Property is not fluid in the physical sense.
Don't forget that the physical nature of property itself -- actual land and buildings, that you can see and touch -- means a lot for your investment. While it's easier to make money on investments that aren't exactly 'real' (speculation, basically), the long, slow return to a culture of personal savings and fiscal responsibility starts with an acknowledgement that simple, clear investments -- like property -- are fundamental because of their inherent un-sexiness.
#4: Boredom is actually a good thing here.
Sure, you can still make money betting on the market, and people are doing it right now. And you can lose a lot of money if you invest badly in property. But most of the money lost came from people 'surfing the bubble', in which property became tied to a belief that housing prices would eternally rise. Now that belief has vanished, and property can resume its normal, quiet, regular position as a solid, clear investment.
#3: Deals are rampant.
Sure, the financial bubble popping has been a fundamental mess for everyone. But remember how people always said property is a secure, solid, more risk-free investment, and how that was a myth in these recent years? It's become that again, thanks to falling values.
#2: It's become inherently more conservative, and thus smarter as an investment.
Although easy mortgages might not be the answer, and banks might be running from them like the plague, the point is that if you do get a home loan, you can be sure that it has been vetted much more strongly than it would have been only two or three years ago. A bank being that cautious? It means your investment is solid.
#1: It seems (sorta) like a recovery has shown up.
Finally, the fact that it seems we've hit rock bottom in terms of the economy is good news -- there's (hopefully) nowhere to go but up. Before another bubble arrives -- and one will -- you should use the prevailing financial winds as your guide: make smart, future-proof investments that are bubble-proof. If you don't expect miracles, you'll at least get results. - 29969
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