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.