Why People Invest In Property

What Is The Attraction Of Property Investment?

For many people, the most prudent way to invest their money is to simply put it into a bank account. However – the number of people who have become wealthy through investing their cash in a savings account is extremely low – if not non-existent. It takes a more prudent approach to ensure that your capital works hard. That is one of the reasons that people build up portfolios of investments – and why most of those portfolios have a healthy dose of property assets.

But, why property? What makes the property so attractive to investors? There are a number of reasons.

The property provides the peace of mind that can only come from owning a physical asset. Property is land – and bricks and mortar, it is something you can see and touch. Investing in stocks may provide returns – but at the same time, it may lead to disaster. There are many examples of companies that have listed on a stock exchange and then simply folded within the medium term. Property investment does not do that. It is a solid, physical asset that will always provide returns.

Those returns can be in terms of a rental income – which may allow the owner to offset mortgage costs, or it might be the sale of the asset. Whichever approach is taken – there is very little possibility of the asset depreciating to such an extent that it is worth nothing. That is another thing about property investment. Property tends to ride out tough macroeconomic times or global economic hiccups. For those property investors who are willing to take the long term view, it is almost certain that the correct property investment will provide superior ROI when compared to other asset classes.

Another advantage of investing in property is that the value of that property can be leveraged to provide collateral for access to further funds – which may assist the investor in either further diversifying their portfolio – or exploring further property purchases.

Property has been an investment choice of savvy investors for generations – and it remains so because it simply makes sound financial and investment sense.