Jimmie SchneiderAre landlords responsible citizens? Some might say that they are not responsible. Some states have blamed housing speculators for making a contribution to the recent property booms and the over inflated values in some areas.
There are many reasons why property values rise and in the final analysis it boils down to demand and supply and it could be argued that property investors act as a release valve to moderate the intemperance of unstable property markets.
Generally speaking investors do not need to pay too much for their purchases, because they have to concentrate on their bottom line and their purchases must be lucrative. It is rare for genuine property investors to get carried away with price when getting a new property. Of all customers they almost surely will have worked thru the figures extraordinarily rigorously.
By helping to maintain the national stock of rental property the financier will keep many would be home buyers out of the market just because they're satisfied and well homed in a rental home.
by contrast government themselves can add to the cost of building a new home with a large array of infrastructure and compliance costs that have increased exceedingly over the previous couple of years and have impacted on the final cost of a new house. Page 2
Property financiers are also criticized for not putting their investment dollars into the state's exchanges and helping business to grow. The answer to that may be seen in the volatility experienced in the stock exchanges over the last few months.
by contrast housing investment is a safer investment. Returns still tend to be good even in a depressed market if you have good renters. The hires bring in earnings and the fact that values drop has no barring on anything unless you are compelled to sell and of course you don't willingly sell on a depressed market. Some would even disagree that you never sell investment property. After all why would you sell something that is making a profit. If you want to buy something else a mortgage can be arranged readily enough commonly.
the undeniable fact that property investors own a big portion of a nation's stock of rental houses, should make them valued citizens of that country. After all , who is going to house the homeless if speculators dropped out of the market. Govt would doubtless pick up the slack. The cost would be large and there would be no advantage gained.
If there is a absence of investment in real business then that's a problem for business to deal with. Safer market offerings would do well and shakier ventures may founder but in the end investors will look after their own interests. Property investment has for years proved to be safe and profitable for the long term investor.