Thursday, 28 April 2011

IS PROPERTY INVESTMENT RISKY?

A myth concerning property:
Read carefully, then give your investment a second thought.
“I think property is too risky.” 
If you think property is risky, we have a challenge for you.  We believe that risk needs to be quantified.  What can be more risky than giving your money to a complete stranger to invest on your behalf? If you take out a retirement annuity over a period of 40 years, which, keep in mind, you have no direct control over, how do you know what the economy is going to be like in 40 years time?  Will you still have the same buying power?  Will the company you invest with/in, still be afloat by the time you retire? Will you be able to survive for another twenty to thirty years on the revenue thereof after retirement?  We don’t know what the future holds for us, the only guarantee we have is that we will die, we just don’t know when, and/or whether our money will last until we do.  Brokers will always tell you to invest long term, hopefully, if you are lucky, your investment might have shown a certain percentage growth.  What you and we and your broker don’t know is what influences the world markets, politics, disasters, wars, medical costs, personal health and recessions will have on your investment.  Another thing to remember is that the buying power of money gets halved every four to five years.  If you pay $6,50 (R48,00) for a movie ticket today, it is going to cost you $13,00 (R96,00) in five years time, an increase of 100%.  If you invest let’s say $6,50 (R48,00) today, will your investment grow with 100% over the next five years? Highly unlikely, if you are completely honest with yourself. Property’s value on the other hand, more or less doubles every five years. Think back, how much did your grandfather pay for his house, and what is the current value of that house or a house of the same size and standard? The value of property has over the last hundred years never decreased.
Give it some serious thought. We will be here if you need us.
Enjoy your day.

11 comments:

  1. I would think that property would be the most sound investment one could ever make. Everyone always needs it!

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  2. What an interesting view about this matter!!
    Indeed food for thought.

    Good luck for your blog, seems to me very informative, a thing people need very much these days, so I'm following it.

    Take care and be save.

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  3. Very useful thought i guess all of your readers will now be aware.
    I'm from Hyde park Homes .

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  4. What a great idea.If you want to see your money then its time for you to invest.

    best regards,
    seattle neighborhoods

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  5. I would say it that it is not risky; it would be if you conduct business with a stranger. Investing in a property is a considerable achievement. Just be sure to do business with a reputable company, and all will be fine.

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  6. This comment has been removed by the author.

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  7. The tips you got about Investment in Real Estate should be used very well. Any of those tips should make or break your business. Analyze it well and know what is right and wrong. Beware of wrong information that has spread through the internet.

    http://www.realestateinvestment-australia.com.au/

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  8. We should study everything about the business we would like to establish. Its not appropriate to establish a business without any knowledge about it. And even we have learned the business and established it, we should still continuously learn. It is really important in this business to learn and continue learning.

    I would like to share some information regarding Real Estate Investment click here.

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  9. The luxury property that my agent showed was lovely, good as new and well located. We hope that the deal turns in our favor! Even though it looks like that the seller will be in more control.

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