Savills have reported that in 2015 developed real estate worldwide reached US$217 trillion. 60% of Global Assets – This amounts to 2.7 times the world’s GDP. As a direct comparison, Savills calculate that all of the gold ever mined amounts to only US$6 trillion.
But a question begs to be asked. Is investment in property sensible? The period of recession during 1991 – 1996 left many buyers in negative equity. And, more recently, those who took out high mortgages with lenders such as Northern Rock in 2009 were left in danger of defaulting on their loans whilst restructuring took place.
Are these examples freak instances that happened to an unfortunate few whilst others made steady profits over the decades? Or is the property market, in general, a creature with a periodic nature and profits are all about perfect timing to avoid the bites?
Dawson & Associates have been involved in the property industry since 1970 and we know that it is all about informed, expert advice.
Firstly, you need to be sure of the motivation for your property investment. Are you looking to:
- Secure a family home
- Make a profit upon resale
- Earn from rental yields
And you need to understand that there are some properties that are better suited for quick returns whilst others offer longterm potential.
The truth is that property markets in the UK, Spain, France, America or anywhere go up and they go down. If you’ve over-invested in buy-to-let, for example, you may suffer whilst rental rates are lower and your profits across the board have decreased. The added risk is also that should the need occur, you cannot release equity or resell quickly. Even the speediest markets take time to bring a property to the attention of the right buyer and then complete contract.
The straightforward advice from Dawson Surveyors is that before you make any decision about investing in property you should research, research, research. Find out everything you can about the building itself, the neighbours and the area. And get a property survey – never skimp on this essential advice.
For more information on making your potential property investment into actual global assets, please call Dawson & Associates today. +44 (0) 1424 882263