Which type of investment should I do?
Whybuy a property investment? During the height of the dot-com share market boom, alleged investment experts scoffed at the property as an investment. The word property was an old economy investment, not expected to generate good returns in the 21st century compared with the profits from so-called new economy investments. We now know that the share price of some of those new economy companies went sky high for a short time, but most came crashing back down to earth.
Many of these dot-com companies now are bankrupt, and shareholders lost everything. With the dot-com boom turning into the dot-bomb, people now recognise physical assets such as property having advantages that aren’t available with shares and other investments. Let’s consider some of the benefits.
Is Property Investment worthwhile?
Property is something you can touch and see. If an investor can drive past the asset and physically see it, it provides a sense of security. Houses can’t be stolen from under owners’ noses, like company funds can be stolen from shareholders. The property offers a regular income stream, usually monthly. An investor can make plans about the income he or she can reasonably expect to receive in the future, whereas shares usually only pay dividends twice a year. Dividends can also fluctuate more widely than rental income, depending upon the company’s underlying business state. So, where you may be able to plan on receiving $450 a week on rental income, or $11,700 each half-year when receiving dividends, you may receive $3,000, one half and only $1,500 the next is dividends from shares are not predictable.