The decision to invest in property is often quite debatable. It depends on the current market climate – whether house prices are growing quickly or declining, and whether you’re buying the property as a primary residence or as an investment that can produce rental income.
The property market has certainly gone through a very tough few years, and property prices have actually dropped during that time. Investors and homeowners who bought property at the height of the bubble have found that their homes are now worth far less than they had paid.
Going forward, it seems like the market is recovering but the recover has been very slow. To slow for most investors. When compared to other investments, the returns on property don’t seem to match the risks associated with it at the moment.
But, for a couple buying their first home, investing in property is still a great decision, especially since it will be their primary residence for at least 5 years. Five years is generally regarded as the minimum investment period for real estate.
Also, property prices are now much more affordable, and record low interest rates have greatly reduced the cost of mortgage repayments.