Huwebes, Disyembre 15, 2016

Properties Are Not Safe Bets This Generation



If it is not the grandparents, it would be the parents telling their millenial children that property -- notably residential properties -- are the best investment bets because regardless of market climates, everyone will need a home.  However, current research data shows that property ownership is not the safest bullet to bite this generation.



Tying one's personal wealth to their properties is an unsafe bet -- similar to the lack of diversity in a portfolio leading to shock losses in the future. According to research by the Globe and Mail, Toronto in Canada's estate markets did perform well with a 1.5 percent inflation rate from 2008's financial crisis to 2015.  But the liquidity -- the easy access of flowing money -- to expand one's investments is something properties fail to grant.

Like everything else, advisors would tell you that diversification is the key to surviving any financial nightmare. One can be invested in properties but one can be invested in stocks and other investments in different markets.

But before investing, one must make sure to have a true, real endgame. Not having a long-term plan for investments is the sole reason while most investors fail to make sound financial decisions during their retirement. Remember, research and understanding the market's climate is the key to invest properly in stocks, properties and other financial vehicles that could help your finances in the future.