Why property continues to be the choice for many investors

Many of our clients first come to us with investments in shares but have made the decision to shift their focus to property investing. The question is why? Why go down the road of bricks and mortar over other investment classes like stocks and shares?

 

The first thing that comes to mind is stability. Take the last few months for example. In the early hours on Tuesday August 25th the global stock market exposed its volatility yet again as it came crashing down. Once again a harsh reminder to investors as to just how unpredictable the stock market can be.  Even since then there have been further upsets and this past week has presented the typical unpredictabilityof the markets as the seemingly ‘untouchable’ Australian retailer Dick Smith's share prices crashed by as much as 69 per cent after the company surprised investors with a $60 million earnings impairment – as reported by www.abc.net.au.

 

Many of our clients who previously held investments in shares tell us how quickly their portfolios changed after witnessing major economic events such as the global financial crisis (GFC) and the August stock market crash, etc.

 

“We always hear feedback from clients telling us that they feel more at ease with investments they can physically see and walk into… that is why they come to us”, says Hannah Schuhmann, Principal of HS Brisbane Property.

 

Another fundamental reason is control. With recent purchasers telling us they invested in property because it enables them to have more power over their investment - unlike other investment classes. They appreciate that property allows them to have full control of where they buy, how they buy and when to sell.

 

That is not to say that economic conditions do not play a part in driving property values. The primary difference is that economic conditions of the share market are much more magnified due to the fact that emotions and the media can have a strong influence on values.

 

One of the other very common reasons we hear time and time again when our clients explain why they made the shift from shares to property is because real estate is a much easier asset to understand. In comparison to the stock market, real estate terminologies and strategies are fairly straightforward. Need-to-know terms come down to things like capital growth, cash flow and yields. 

 

If like many of our other clients you are looking to have a balanced approach by not having all of your resources in one placewe would love to talk to you about Brisbane properties that can offer you great returns on your investment. For more information or to book an appointment callHannah Schuhmann on 0419 782 133. 

  

Source:  http://www.abc.net.au/news/2015-11-30/dick-smith-shares-crash-69-per-cent/6986576