Property Remains One Of The Best Assets To Invest In

The past decade has been volatile for any investor who experienced many ups, downs and challenges. From statistics and data available, property remains the number one trusted asset class, guaranteeing a return, safe investment and growth, even in times of uncertainty.

The property market is unique and reacts differently to whatever is happening in the economy. Testimony of this can be seen as the property market’s positive reaction during the recent covid19 pandemic. Rising interest rates and ever-increasing inflation rates have again created a “nervous” impact on the property investor. However, there is so much more to this medium/long-term investment, and a short-term view should not be the deciding factor.

In the past two years, there has been a major shift in the demands and behaviour of the consumer. Demand is ever-increasing for people working from home, homeschooling children, re-locating for lifestyle or, in short, people and/or families are “moving home”. Home has become where we stay, live, work, socialise, school, play and enjoy being – no longer just the place to eat, sleep and refresh. This shift has been a significant influence on the demand and upward trend of the values of residential property. 

Interestingly enough, during covid 19, everyone thought we would never return to the office again, but this has proven unfound. Instead, businesses have found that physical interaction is the predominant factor in a company’s success and the well-being of the employees’ mental health. What has changed is that businesses have adopted a hybrid model where workers have a desk and office hours but still work from home most of the time. This has positively impacted demand for well-priced, well-located commercial spaces with reliable energy supply. This has caused an injection back into the commercial property space.

Furthermore, not forgetting about student accommodation, which is always a sound investment. Students are returning to campus and have to stay where they study. As a result, campus life is nearly back to normal, creating many opportunities for investors in this market.

The residential market has gone through a cycle of very positive buying due to very low-interest rates. However, this has changed to higher demand for rentals / letting due to recent interest rate hikes, affecting the affordability of the potential buyer. For any investor ideal time to enter the buy-to-let market with endless opportunities. 

Investors must remember that people will always need a place to live, work, shop, etc. Demand for property is a given, irrespective of what cycle we are in – whether to rent or buy, residential, business or commercial. The theory that property is one of the best asset classes to invest in lies in the knowledge that there will always be possibilities with demand.

 

— Marsha Haupt