Over the past few years there has been so much negativity and bad publicity regarding the housing market and how investing in property is no longer worthwhile, profitable or a good investment for your future. This, of course, is not true, because property ownership is still one of the best investments you will make, but it’s important to remember that any investment carries some risk. Property is definitely at the lower end of the risk scale when you compare it to the likes of shares and alternative investments, which can cause higher levels of issues but in fairness, carry a higher level of reward. The choice you make when choosing property as an investment is the choice of a probable lower return but a much safer risk factor.
An investment property is a solid investment for many reasons. Everybody needs somewhere to live and in the developed world there is often a shortage of housing, especially for the lower end of the earning scale. If you have a product that has a great demand, the chance of you making money from that product is even higher, hence why owning a property and either renting it out or sitting on the house and then selling it later, is still a great money making venture. Unlike some other investments, property is a necessity when it comes to what people need, whether it’s buying or renting, there is always going to be a demand for something that is so vital in our modern world. Historically, property has always risen in value and price if you look at the statistics on a long term basis.
It is true to say that there have been blips or mini falls in prices, but if you look at the strength of property over the past 50 or so years, you will see that in most, if not all areas, property prices have continued to rise, sometimes with a rapid increase but mostly as steady and stable increase, which helps to account for any so-called crashes that may occur over the years. Not many investments can boast a long term continuation of a rise in value, but property is proof that as investments go, it is possible to have both a short term and long term rewarding investment, all in one. When you look at stocks and shares, you have hardly any control over how they work as an investment. If you are willing to sit and monitor live share information all day, you do have a good chance of making money on your initial purchase price.
But with a property you have the choice of how it works as an investment, whether you decide to buy a home, renovate it and then sell it, or maybe you will buy a building, rent it out and then sell it when the value has risen and the market has improved. You really are in good control of your investment and how it works for you. So, if you are still worried about whether property is a good investment for you, you only need to look back over history to see that although prices can drop, in terms of a long term growth, they have continued to rise for many years and will no doubt continue to do so in the future.
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