As economic recovery sets in, investors chose to invest in assets with high returns rather than the traditional safe investments namely government bonds and property.
Yet, it is thought that there are many reasons why investors should invest in property rather than any other type of assets:
- There is a constant risk of another recession.
- UK property provides high yields compared to other assets. In fact, there are parts of the UK where yields are around 10% such as Birmingham. On the other hand, interest rates are only around 0.5% in the UK and 0.25% in the eurozone.
- The UK is one of the safest countries to invest in as it is politically stable wehereas in countries where property gives higher yields such as Egypt or Colombia there is a big risk especially because investors cannot predict what may happen there.
- The government bonds are no longer considered totally safe as the notion of 'government default' has emerged recently with the Greek economic collapse.
- Gold that was also considered as a very safe store of money is no longer as it is especially after th recent decline in the world's price of golds especially in april 2013.
- Property in the UK is liquid compared to many other european countries. Smaller flats for example in UK cities are highly sellable especially in the asian market.
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