Real Estate Investment - Why it is Big Business?
Real Estate Investment - Why it is Big Business?
In the current global financial climate, investment in real estate is seen by many as a way of successfully diversifying long term savings away from the higher risk, currently non-performing, stock markets.
When examining the different asset classes, real estate is generally far less volatile than shares and real estate tends to be the haven that investors flock to when other asset classes are suffering.
It is true to say that investment properties can have many benefits in terms of building long-term wealth, but we must never forget that this wealth is not guaranteed!
Following the global real estate boom of the late 1980’s many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market. The bottom did not truly fall out of the market however as all real estate retained value; the real estate market simply experienced an overdue rebalance and has gone on to build from this point of stability.
Since the booming 80’s ‘sensible’ investments in real estate have still offered major attractions and advantages, and it is back to real estate that investors have turned in recent years.
With real estate prices in some countries soaring, and first time buyers struggling to get onto the first rung of the real estate ladder, many people are looking further a field for investment property opportunities.
A recent report in the
UK
highlighted a 130% rise in the value of farmland since the 1990’s for example – fuelled entirely by a new breed of non-farming buyers. With bricks and mortar real estate prices in theUK
now so exorbitant, these non-farming buyers are looking for alternatives for their money....
