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.