Why Choose Property Investment in Today’s Market

The choice of property investment in today’s market is perhaps the best financial decision that can be made since property offers much more than other types of investment in terms of security, appreciation and assured returns. The global financial crisis, the volatility of the stock market, the euro debt crisis and other disturbing financial events, have undermined the performance of all the financial instruments that one could consider investing in. Hard money seen sinking and its value falling to zero, has ruined the lives of thousands across the globe, and it is foolishness to consider investing in options that cannot protect even the principal amount.

Today’s market is clouded with uncertainty and unpredictability. The high inflation rates and reduced consumption, low demand trends with higher unemployment levels have left a deep impact on economic development. This has also impacted the real estate market badly and as the housing bubble burst, hundreds of foreclosed properties became available, at prices below their actual value. Purchase of such properties would be a smart move since they would appreciate more, from their current low levels, and further declines being virtually ruled out by real estate experts.

Why Property

  • The only tangible asset that can be used for living – Property is the only financial asset which has a high utility and can be used for living one selves. It has a physical form with a value of its own.
  • Appreciates in value over time – Property always appreciates at a slow and steady rate and yields returns over time. Depending on the type of property, location and other factors, short or long term gains can be seen.
  • Has an intrinsic value that can never be negative – Property is not something with a represented value-it is physical asset with a value of its own, that may sometimes decline or fluctuate but can never become zero or negative like stocks etc.
  • Not subject to sharp price movements – Property prices are not volatile and almost never see sharp spurts or declines.
  • Works for short term and long term gain – depending on the buying strategy adopted, property can yield short term gains( like renovating and flipping), or long term gains from a buy and hold strategy.
  • Used to take loans during emergencies – property is universally accepted as collateral against which loans can be taken in an emergency.

Today’s market scenario for property

The current market scenario is fraught with uncertainties, fears and skepticism, with consumer spending not picking up and investors opting to hold on to cash rather than make financial commitments since all available financial instruments are following unpredictable paths. Property is one of the very few safe investments to hold on to, and safe to buy after proper research and verification of future prices trends, location and locality. Property prices today are at a lower end, with promise of escalation in the months to come. Irrespective of which strategy is adopted, be it buy-and-hold, renovation or flipping, returns are sure to come by and there is little chance of prices falling further for the present.

For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

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