Property professionals have weighed up the benefits of buy-to-let investment and share buying – and said the former is a better bet.
Prompted by the collapse of US investment bank Lehman Brothers, UK-based Young Group looked at the pros and cons of both types of speculation.
The ‘tangible value’ of property plays a key role in making it more attractive compared to gambling on the stock market, experts from the firm said.
Historically property doubles in value every seven to 10 years, said Neil Young, who is chief executive of the property portfolio management firm.
He said:
“The attraction of property investment is not only that it is a tangible asset, appreciating over the long term, but it is also easy to comprehend.
“Financial institutions have created instruments that many don’t fully understand – you try getting money from the Dragons Den panel for an investment they don’t fully grasp.”
Among other listed property plus points was the fact that “despite current headlines”, UK property prices have fallen by an average of just 1.2 per cent year on year from 2007 to 2008.
Mr Young also noted property has a 100 per cent price recovery rate and prices have only fallen for five of the last 55 years.
In assessing the benefits of dabbling in the financial markets, he noted 100 per cent of an investment can be lost overnight when a firm ceases trading.
Related posts:
