This week we have all seen why property investment opportunities are still a wise move. When Standard & Poor downgraded US debt the week before last it sent the value of stock markets tumbling and heralded new talk of financial doomsday.
An article in the BBC August 10 tells us that "London's FTSE 100 index fell almost 15% over the last nine sessions, while Germany's Dax lost almost 22% and the Dow in New York fell 11.2%". Even the Asian stock markets fell hard with Korea Composite Stock Price Index (KOSPI) - plunging by 7.4% in the immediate aftermath of the downgrade, and Japan's Nikkei falling 2% to a five month low.
"The losses were across-the-board:" says the Guardian. "The New Zealand and Australian stock markets also slid by at least 2%. Hong Kong's Hang Seng Index lost 4% at one stage, with the Shanghai Composite Index down by 3.7%."
The world and its reporters hadn't seen falls like this and it sent investors once again searching for safe-havens, with the price of gold rising 3% in the madness. Gold is one safe-haven, but as we all know the price of gold has soared since 2008. Property is another safe-haven, but the difference is there is a whole swathe of opportunities to invest in property that is not only not overvalued, but is undervalued.
The stock markets can fall massively in minutes, but house prices, property values and rental rates can never do that. Even other property opportunities are a better bet than stocks and shares. Reading that on a site like this -- a site full of property investment advice and opportunities -- could be taken with a pinch of salt, but you don't need to take our word for it; read any article about stock market performance during this volatile time and almost all of them will state the real estate investment trusts are one of the safest bets.
We all need somewhere to live, populations are growing and populations are living for longer. The inevitable outcome of this reality is increasing demand for property, and with no chance of making any new land (except of course artificial land creation as in Dubai) we are looking at demand outstripping supply. Of course, this is already the case in many places, and these places will always be a fantastic property investment opportunity waiting to bring profits.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.