Why you need to invest
After the economic uncertainty of the last decade it is not surprising that many people are wary about investing. Investments that had previously been seen as safe are no longer viewed in the same way and with returns offered by banks failing to match inflation, scepticism is definitely understandable. The truth is however that it is times like this when we need to secure our long-term financial futures and this inevitably requires investment.
Keeping your money in bank or ‘under the mattress’ will result in losing money in real terms due to the fact that your capital will not be appreciating but prices, on the whole, remain on the increase. Obviously, it depends on where individuals are personally in their investment cycle but most people will be looking for a ‘reasonable’ return with very limited exposure to risk. Unfortunately, these investments are not easy to find and diversification is still one of the best ways of mitigating risk.
What has traditionally been the case in times of uncertainty is that investors tend to opt for traditional safe haven investments such as property and gold. This can be a wise decision, certainly to make up a percentage of your portfolio, and investors tend to feel reassured that they have something tangible that they can see and touch. Whilst these types of investment are still subject the peaks and troughs, over the decades and even centuries they have appreciated in value and are investments that are always in high demand.
We all know the value of gold but if we were to look at property it is not hard to see the attraction. Property and land will almost certainly appreciate in value regardless of where you are in the world.
This means that investors will benefit from capital appreciation whilst those looking at property as an investment in terms of rental income will see a two-fold benefit. Demand for rental properties is high at the present time and is predicted to remain this way for the foreseeable future. This means that risk levels are also reduced.
Higher than average returns along with low perceived risk are an investors dream. Returns from rental properties around the world are often anywhere between five and ten percent.
The downside of investment properties is the lack of liquidity as well as the uncertainty regarding finding appropriate tenants. If some form of rental guarantee were to be offered investment properties would be even more appealing.
It is perhaps for this reason that and increasing number of property developers are now offering rental guarantees to attract investors.
The rental guarantee negates the issue of finding these suitable tenants whilst at the same time giving investors a level of reassurance knowing that will receive a certain return for a given period. One such offer is available from the New Nordic Group who operate in Pattaya, Thailand.
They are currently offering a 10% p.a. rental guarantee for periods of anything from five to twenty years.
They have a proven track record having run similar schemes for around a decade and now have an extremely experienced management team.
The returns offered are far greater than inflation and higher than those offered by the banks whilst at the same time being relatively low risk.
We all accept that we need to invest so surely it would be wise to include a New Nordic investment property in your portfolio?