Why property continues to be the choice for many investors

Many of our clients come to us having previously held investments in shares but now having made the decision to shift their focus to property investing. The question is why are so many people turning back to real estate?

 

The first thing that comes to mind is stability. Take last week 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.

 

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 last week’s 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’s why they come to us”, says Hannah Schuhmann, Principal of HS Brisbane Property.

 

Another reason, clients share with us, is that with property they feel they have more 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 choose 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 news 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.

 

If like many of our other clients you are looking to make the switch, then we would love to talk to you about some Brisbane CBD properties that astute investors will be particularly interested in. For more information or to book an appointment callHannah Schuhmann on 0419 782 133.

 

* We suggest speaking with your financial advisor to create the right investment strategy for your circumstances.