Something to consider?
I recently spoke to a real estate agent, or realtor, about the changes in the property market and how some people still considered property to be a good investment for retirement or whatever their financial goals. It was an interesting discussion as we both had learning points.
He was showing me some graph about how the property prices have been on an overall upward trend. This was despite the various drop in prices due to factors such as the Asian Financial Crisis, SARS, or US Subprime crisis. This was a compelling argument. Of course he was trying to sell me the idea that property investment was the way to go.
Not to be outdone, I also brought out various counter-arguments (that's just so me) and charts. While I agreed with him that the property markets have been on a overall upward trend, I pointed out how an investor needs to have big upfront capital in order to enter the market. Also, if an investor had put money into some investment funds, he/she would have been making some money over this same period from 1970s to now.
No matter how one chooses to invest their money, it must be certain that one must not place all his/her eggs into a single basket. Diversification is important.
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