November 16, 2009

Should I Invest in Property, After All That’s Happened? 5 Fundamental Reasons Why You Should.

Sure, the financial crisis has really caused a lot of problems, but the actual idea of investing in property is still fundamentally solid. Here, we present 5 reasons for why that is. These are observations we’ve taken from the financial pages, not official legal or financial advice.

#5: Property is still property.

Sure, some people made a ridiculous amount of money through hedge funds and other ways of betting on the stock market. But it shouldn’t be forgotten that the physical value of being able to hold a piece of property in your hands, and to touch its walls, is fundamentally different than a simple digital number.

#4: Property has become boring again.

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.

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: Being conservative in your investments is good.

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: It seems (sorta) like a recovery has shown up.

While it’s not a good idea to say that “there’s nowhere to go but up”, it does seem to be like that right about now — it really did seem as though the stock market and the economy itself bottomed out a few months ago, and are finally taking off once again.

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