When reviewing the various asset classes, real estate is generally significantly less volatile than equity and real estate tend to be the haven of investors growing up when other asset classes suffer.
It is true to say that investment properties can have many advantages when it comes to building long term prosperity, but we must never forget that this wealth is not guaranteed
Following the global real estate boom in the late 1980s, many investors learned this difficult lesson when they found that their properties were worth significantly less than they actually paid for them and the bottom apparently fell out of the overblown market. The bottom does not really fall out of the market, but as all properties have retained value. The real estate market simply experienced a delayed rebalance and has continued to build from this stability point.
Since the blossoming 80s reasonable investment in real estate has still offered major attractions and benefits, and its back to real estate investors have turned in recent years.
With property prices in some countries rising, and the first time buyers are struggling to enter the first ring of real estate steps, many people see another field of investment opportunities.
A new report in the United Kingdom highlighted an increase in the value of agricultural land by 130 percent since the 1990s, for example driven entirely by a new breed of buyers without agriculture. With real estate prices in brick and mortar in Britain now so unreasonable, these non agricultural buyers are looking for options for their money.
They can not afford real estate investment and do not want to risk their money in the ever volatile stock market, and they buy up fields and pastures to enter the real estate investment game
Other interested in real estate investments have reviewed real estate markets worldwide for value for money, return on investment, potential for growth and development, rental market opportunities and basic stability. Current research shows that up to one in eight Britons intends to buy a foreign property within the next five years, you can see that foreign real estate investment is very big business.
Relatively newly discovered real estate markets open or expand in, for example, Northern Cyprus, South Africa and Bulgaria where potential buyers offer incredibly good value for money in terms of real estate. The property market in countries such as these have been artificially limited by the threat of war or political instability, and now with its recent history of being stable countries with strong economies and populated and controlled by those with a first world perspective, property investors are finding markets rich in diversity and potential.
Dubai is another country that offers interesting investment opportunities for real estate. Since May 2002, when the Crown Prince of Dubai issued Sheikh Mohammed bin Rashid Al Maktoom a decree that allows foreigners to buy real estate properties there, the real estate market has exploded
Real estate found in Dubai varies from modest apartments with one bedroom to free exclusive islands And property there still offers very good value for money in addition, the tax and business benefits in Dubai are very appealing, and investment in Dubai is investing in a sharp upward trend.
And then there are the old favorites France, Florida and Spain, for example, all countries with a long history of investment in real estate, especially for British and northern European residents who want to avoid the weather and invest in a home in the sun. Whether you are looking for a home for vacation, retirement or looking for a long term investment opportunity, these countries still offer investment potential for property development.
When it comes to considering real estate as an investment vehicle, its a proven method used to insure long term gains but as with all investments, profits, returns, and collateral for investment are not guaranteed. If real estate investments are right for you and match your circumstances and attitude to risk is something you need to think about.