Is Property a Good Investment?
Is property a good investment? It’s a question often debated, here we look at property investment vs other investment options.
Ok, so you have a few quid burning a hole in your pocket and you don’t want it to just earn the kind of miserable bank interest which would give you a handful of coins extra at the end of each month. Is property your best investment choice? Let’s check out a few comparisons
Property Investment vs. the Stock Market
Compare the history of UK property prices with a graph of stock market performances to find out which approach is right for you. If you don’t mind your investment climbing one day and falling the next then maybe the stock market is for you. However, for a consistently improving performance a house is going to give you a steadier and more predictable rise most of the time. The value of the FTSE 100 is worth less today than it was ten years ago does that sound like a good return? With a plan, there is little chance of you losing your shirt on the housing market but how many experienced stock traders have been left shirtless over the years?
Property Investment vs. A New Business Start Up
This definitely isn’t the time to start a new business, is it? Well, it might be depending upon what type of business it is. However, starting your own business is always a risky affair and it usually takes a long time to give you any sort of financial reward. What you will get fairly quickly are some headaches and a lot of stress. Buying a property is a lot less stress free, more predictable and hands off.
Property Investment vs. Buying Commodities
Commodities such as gold and silver tend not to fluctuate as wildly as the stock market in normal conditions. This is both good and bad news, as you shouldn’t expect a big loss but you probably won’t make a fortune either. The very thought of owning a whole lot of gold is pretty tempting but many analysts are now suggesting gold is in a bubble that is soon to burst. With so much uncertainty over the price of gold you may want to make an investment which is considered to be among the safest and which also gives you a chance to make a rental return, property.
Property Investment vs. A Traditional Pension Plan
The recent pension crisis in the UK has effectively turned most of us way from this kind of scheme. If you want to enjoy your retirement years with a healthy bank account then building up a good property portfolio is the way forward. You will thank yourself for doing so in later years.
So is property a good investment?
Compared to the alternative the answer has to be YES, you can leverage, get a great rental return and expect growth over the long term.
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