Investment Property
The media is full of reports of falling house prices and tales of doom and gloom in the buy-to-let market. So, if you have money to invest for the long term, is property investment no longer a wise investment?
We are not licensed investment advisers, so legally we cannot advise you to put your money into property. However, we can add a little common sense to all the tales of woe:
- Anyone who bought shares during the depression in the 1930s or the bear market of the 1960s when the index was down 80% at one stage eventually made a lot of money IF the company they invested money in stayed in business.
- Anyone who bought investment property in the 1930s or the 'property crash' in the '80s made money if they held on until prices recovered. Land and property will always be there.
- We believe that, as long as the rental income covers expenses and we are wise enough to leave a good safety margin in case rents fall; in the long term property bought in the next few years will prove a sound investment.
- Property is like a see-saw: if people are unable or unwilling to buy, the number of people looking to rent rises.
