Should I Invest in Property, After All That's Happened? 5 Fundamental Reasons Why You Should.
Monday, 16 November 2009 09:13 | 
Written by Fred Jason |
Yes, while the worldwide economic meltdown has hit the property market in some places especialy hard, there are still many fundamental reasons (we're presenting 5 here) as to why it's still a good idea to invest your money in property. This is not solicited or legal advice, but rather just observation from the finance markets.
Yes, while the worldwide economic meltdown has hit the property market in some places especialy hard, there are still many fundamental reasons (we're presenting 5 here) as to why it's still a good idea to invest your money in property. This is not solicited or legal advice, but rather just observation from the finance markets.
#5: Property is what it is.
We often forget, because of changing prices and the digitization of all finance, that property is a physical thing that can be possessed and stood upon or lived within. Therefore, it has a fundamental physical weight to it that random speculative investments lack, even if those speculative investments can make some people rich. When returning to fundamentals, property should be first on the list.
#4: It's even more secure these days.
Boring is good. Surfing on the ever-rising value of property was a bad thing, and caused people to make reckless decisions and treat property like it was some far-off commodity to be whipped around on a trading floor, not something where millions of people spend their lives and sleep at night. Now that we're (slightly) back to that, things are smoother.
#3: Deals are rampant.
If there's any positive when it comes to the housing bubble, it's that you can find solid deals even in the face of disaster -- more than ever, it's actually one of the better times to invest in a 'guaranteed' investment.
#2: A change in behavior is underway.
Banks are now extremely reluctant to give mortgages to anyone. While heavy Wall Street reform hasn't fully happened yet, the scare that every major bank got from seeing its balance sheets go so awry has meant an extreme tightening of mortgage rules. That means if you are actually able to get a solid mortgage, its inherent conservativism will serve you well in the times ahead.
#1: Recovery is finally here, sort of.
It's inherently risky to say that the economy has reached its "rock bottom" and is fundamentally on the rise again, because a new crash or crisis could still occur at anytime. But most people do agree that the bottoming-out is over, and it's time to look up again.
Yes, while the worldwide economic meltdown has hit the property market in some places especialy hard, there are still many fundamental reasons (we're presenting 5 here) as to why it's still a good idea to invest your money in property. This is not solicited or legal advice, but rather just observation from the finance markets.
#5: Property is what it is.
We often forget, because of changing prices and the digitization of all finance, that property is a physical thing that can be possessed and stood upon or lived within. Therefore, it has a fundamental physical weight to it that random speculative investments lack, even if those speculative investments can make some people rich. When returning to fundamentals, property should be first on the list.
#4: It's even more secure these days.
Boring is good. Surfing on the ever-rising value of property was a bad thing, and caused people to make reckless decisions and treat property like it was some far-off commodity to be whipped around on a trading floor, not something where millions of people spend their lives and sleep at night. Now that we're (slightly) back to that, things are smoother.
#3: Deals are rampant.
If there's any positive when it comes to the housing bubble, it's that you can find solid deals even in the face of disaster -- more than ever, it's actually one of the better times to invest in a 'guaranteed' investment.
#2: A change in behavior is underway.
Banks are now extremely reluctant to give mortgages to anyone. While heavy Wall Street reform hasn't fully happened yet, the scare that every major bank got from seeing its balance sheets go so awry has meant an extreme tightening of mortgage rules. That means if you are actually able to get a solid mortgage, its inherent conservativism will serve you well in the times ahead.
#1: Recovery is finally here, sort of.
It's inherently risky to say that the economy has reached its "rock bottom" and is fundamentally on the rise again, because a new crash or crisis could still occur at anytime. But most people do agree that the bottoming-out is over, and it's time to look up again.
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