Subscribe Feed (RSS)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 still property.
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: Boredom is actually a good thing here.
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.
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: 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: The recovery is underway.
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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