Property is still one of the safest assets to invest in. To what extent do you agree with this statements? The economies of many countries, nowadays, are not yet stable. Some economies are returning from the recession. Some are continuing to get worse. People are looking for a new business or a new job to earn an additional income. In this difficult economic situation, where everything is not always stable, people are looking to invest in something that will pay them remunerations for at least a decade. Property, any physical or intangible entity that is owned by a person or jointly by a group of people, has been said to be one of the safest assets to invest in since property always plays a big role in driving an economy. This essay will state the reasons why property is no longer one of the safest assets to invest in. There are three parts that are going to be included in the essay: the comparison in volatility between property and stock market, the advantages for investing in property, and the risks, dangerous, or the disadvantages in property investment.
Reasons of investing in Property
Property is one of the investments that every investor should focus on because it is one of the safest assets to make an investment in. First of all, property is a good collateral asset. It is acceptable to be a secure loan for lenders. As its value increases, borrowers can ask for more money to borrow from banks or financial institutions (Palmer, 2011). Second of all, inflation and interest rates, property always give returns, which are greater than the increase of inflation or the interest rate at the bank. According to Bowsher (2010), with an investment of £1,000 over 50 years, the value of cash will increase up to £2563 from receiving interests at banks and £3,789 by investing in real estate. Third of all, stability, property is more stable than that of stock markets and some other kinds investment. (Bowsher, 2010) Fourth of all, land is limited, once it is occupied...
Bibliography: Bowsher, E., 2010. Shares vs Property: Which is best for savers. Love Money [Internet], December 2010 Available from: http://www.lovemoney.com/news/savings-investments-pensions/savings/10684/shares-vs-property-which-is-best-for-savers [Accessed 22 April 2011]
Palmer, A., 2011. A special report on property: Bricks and Slaughter. The Economist [Internet], March 2011
Available from: http://www.economist.com/node/18250385 [Accessed 20 April 2011]
Swire, D., 2011. Skyscraper: CRI 's Dominic Swire has the story. english cri [Internet], January 2011
Available from: http://english.cri.cn/7146/2011/01/06/2702s613802.htm [Accessed 25 April 2011]
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