2006-07-13 08:18:54 · 6 answers · asked by jayant s 1 in Business & Finance ➔ Investing
Dont be confused like some to assume that house prices will continue to rise as they have done. Its not historic performance that generates future performance so saying the last 10 years were good therefore the next 10 years will be good is wrong.
House prices will continue to rise but at a reduced rate, yes there is a demand but wage levels are an important determinant of this demand. Since wage growth has not grown in line with house prices then affordability becomes an issue, yes there are people buying homes for investments but even they will get to the point where the intial investment becomes too costly. Also be aware UK interest rates may rise if inflation continues upwards which would lead to increased interest payments which is another consideration when investing.
Alternatively you could look at property funds which deal with commercial property and rents. However in the long run equities should outperform property.
2006-07-13 09:32:15 · answer #1 · answered by Damien A 2 · 0⤊ 0⤋
There are a couple of variables, including what is the purpose of the investment.
Further, stocks go up and down. House prices increase, and if they don't downright decrease, they at last stagnate for a while. SO it depends at which end of the relative cycles you make the investments. The most important thing in investment, is to be where the rest of the people are going to be, i.e. buy before everybody else jumps in and pushes the prices up.
2006-07-14 11:00:12 · answer #2 · answered by Piet Strydom 3 · 0⤊ 0⤋
oh yes, the market is slowing a little but has risen dramatically over the last 10 years. If you choose property wisely. A house bought for under 100 000GBP four years ago is now worth over 400 000 in a lot of places. that is a good, safe return
2006-07-13 15:22:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
population is growing and the space is reducing. So property is something which will provide you a good return for sure than the stocks......(do your homework, before you come to a conclusion. Because it is my opinion not a surity)
2006-07-13 15:23:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depends upon the property and depends upon the share.
You must make your own evaluation based upon your experience, skills and temperment.
2006-07-13 18:44:26 · answer #5 · answered by andrew f 3 · 0⤊ 0⤋
YES.
2006-07-13 15:27:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋