OPINION – Why investing in property is not low-risk or passive.
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GUEST - Maya Fisher-French is a financial journalist and author at Maya on Money
Investing in property can be a great investment but be sure that you understand the risks. I recently ran a survey on social media to understand what asset classes people invest in. The majority of women prefer property over investments such as unit trusts or exchange-traded funds which are related to the stock market.
One of the reasons people – especially women – invest in property is that they believe it is less risky than investing in market-related investments. They feel that property is tangible; they can see it and touch it, and they understand how it works. While property can be a viable investment, it is incorrect to believe that an investment property is less risky than a diversified portfolio of shares. It is also not a passive source of income. It requires a lot of management.
Investing in property can be a great investment but be sure that you understand the risks. I recently ran a survey on social media to understand what asset classes people invest in. The majority of women prefer property over investments such as unit trusts or exchange-traded funds which are related to the stock market.
One of the reasons people – especially women – invest in property is that they believe it is less risky than investing in market-related investments. They feel that property is tangible; they can see it and touch it, and they understand how it works. While property can be a viable investment, it is incorrect to believe that an investment property is less risky than a diversified portfolio of shares. It is also not a passive source of income. It requires a lot of management.
