Why Invest In Property?
Property
has become one of the most common investment options in recent years.
Some people consider other vehicles such as savings accounts, financial
products such as stocks, shares and bonds, and art and collectibles. These
may be valid forms of investment, but they do not match the buzz and benefits
of property ownership. Property investment has come of age, and it is
now one of the first things people think of when they find they have spare
cash. Some people invest in property at home, but the big gains are to
be made by investing in property overseas. The world is very small now,
and travel is not the issue it once was. Property investment in any part
of the world can now be a considered option. Why has investing in property
occupied this position? Some of the reasons are outlined below:
Property is Secure
I can hear you thinking of all the newspaper articles about price slumps in Florida or Spain, or even in the development down your street, and you're wondering why we think property is secure. The reason is simple. If you go through proper channels (no cash in suitcases), well established procedures have been put in place to ensure property transactions are reliable and trustworthy. Surveys and checks are carried out to ensure the seller owns the property and all debts have been paid. This is often more than can be said when buying a second hand car. If you buy a property using standard procedures, these procedures are there to protect you. Try to cut corners, and you step outside that protection. I'd rather buy a resale property as an investment than a second hand car.
Ownership Of Property Is Easily Established
When you buy a property, your ownership of that property is registered in deeds and at land registry. Different countries have variations in detail, but the main functions are the same. This is much safer than buying artwork or antiques, where ownership and provenance are not always straightforward to establish. Investment in property provides you with clearly documented ownership of the product.
Property Prices Go Up More Than They Go Down
When
you read about any investment, the rider is always added that the value
can go down as well as up. This is true of every worthwhile investment,
so your task is to find an investment where this is less likely to happen,
and if it does, will leave you with the least problems.
We feel that property is one of the most reliable investment options around. There are surges in property prices that can't be maintained, but what happens most often is that the prices stabilise until salaries and other indices catch up. Where prices do actually decline, the fall tends to be small. The main reason is that when individuals buy property and see the price rise, they would often rather wait for price recovery than sell when the price falls. This has a stabilising effect on prices, making price collapse less likely. If prices fall, this may well be the best time to buy at a good price. You should always consider going against the tide. You will have less competition
Property Is Difficult To Steal
Unlike most other investment options, property is difficult to steal. Houses and land cannot be stolen physically, and where your ownership has been established, the procedures to transfer ownership are not ones that can be easily triggered accidentally or maliciously. If there was a dispute over ownership, the property and land cannot be removed while the dispute is being sorted. You always have the option of resolving problems in court, with the property still in the same place.
The Ratio of Insurance Cost to Property Value Is Relatively Small
Any
item of value should be insured against loss or damage. Unlike jewelry,
artwork or antiques the insurance cost for property structures is quite
small, when compared with the value of the property.
Property Is More Fun To Own
There is a primal buzz in owning property and land that is not so readily
associated with other objects. Investment property gives you a sense of
ownership that few other investments can match. Investments in financial
products are the least stimulating as you are so far removed from the
object of the investment. Property and land on the other hand is physical,
observable, and you can live and play in it. Would you rather spend some time living
in your investment property by the beach, or read about the value of stock
in a chemical company you rarely hear of?