In a recession, the value of property can plummet. Any attempt to resell at that time would mean you lose a lot. Nonetheless if you invest in residential real estate for example, whether there is a slump or not, you'll still be collecting rent for as long as you got tenants. If you are lucky, that's if you buy property that's strategically located in a place where you'll always have tenants [or won't have trouble finding them] . . . Question: is owning such property safer/better than buying stocks, trading, etc?
There is no such things as "the best investment." Risk and profit always goes hand to hand and the amount of time and effort you need to put into the particular investment is also something to consider. I think that if you have a lot of capital and the idea is to buy and just enjoy from the incoming rent then real estate is a good choice. I personally prefer to invest in real estate through a REIT since it gives a lot more diversification and there is no work to be done from my end.
Real property can certainly be a great investment, and can often be recession-proof if it is always occupied by renters who always pay on time and don't damage the properties or otherwise cause you problems. But property comes with its share of other concerns - normal maintenance and repairs, liability risks, property insurance and taxes, etc. And real property is not as liquid as shares of stocks or mutual funds.
I don't think there's a clear answer because so many factors are involved for each property. It can prove to be the best type of investment for certain individuals in certain areas and then be the worst option for others in different areas. I'd love to own property and use it as an investment instrument, but I wouldn't rely solely upon real estate for my investment income. That's a little too risky for me.
Take a look at REITs. Basically they are companies owning A LOT of real estate, renting them out and paying the rent out as dividends. Currently according to US law a REIT has to pay out 90% of it's profit to shareholders if they want to benefit from the tax reductions that REITs get. Of course sometimes they buy new properties and sell old ones but the majority of the revenue is from rent. It's much less risky as your money is divided into many different investments in different locations, often even in multiple types of real estate. Also you can get started with the same amount that you would get started in other types of shares, so roughly $500. And as JR very well pointed out, property is not very liquid. REITs are. The housing market is quite expensive at the moment so REITs could have a bit of air in their prices too, but if you buy & hold them it really doesn't matter as long as the long term prospects are good.
I do believe property is of great value. Also it's value never decreases these days. As the time passes by, the property values only increases. So having a property is of great use on any given day.
If you own a property, make sure that it brings money to you. An empty house with no one renting it becomes a liability to you because you have main the house, pay the utilities, taxes etc. It will sure does increase in value.. but you will only get the benefit of it when you sell it at the right price.. what if the real estate price in that area becomes cheap? Actually, I am not sure about that.. but I guess, what I am trying to say is.. Property could only be a good or "best" investment if it brings you more money than you spending on it.
I feel that the best investment is something determined on each time, but for sure that property is one of the best because usually it's always valuing, considering we choose a good location.
Property can be a great investment if you buy the right type. I think the best value can be gained either by buying somewhere in order to rent it out or by purchasing a house which is going cheap because it needs a lot of cosmetic work. These houses can often be tidied up and given a makeover really inexpensively. Doing this obviously increases the market value, so you can literally just sell it straight on.
Property is a very good investment when you think about getting one. I believe one should really think about doing something great with the property and living a good life.
