Many investors have a strong affinity for residential property investment. Quite often it forms the bulk of their investment portfolio. Property is tangible, unlike shares, and it is relatively easy to understand. Unlike shares. It is also within reach of most individuals where the bank will allow you to loan against it. Again, unlike shares.
So, when we review investor portfolios, and we see a significant bias
towards property, we should question its value as an investment.
To our minds it needs to compete for its space. Often it is the default option, with other investments – local and offshore shares for
example, fighting over the scraps.
Below we investigate the investment merit of residential property investment. Not too long ago one could have been lynched for
simply raising the question. However, a few years of weaker growth, rising costs and political uncertainty provides us the opportunity
to test this beloved asset class without the prejudice of past performance making the discussion moot.
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