On a scale of one to 10, residential real estate scores below average for thrills.
“If you want an investment that keeps the adrenaline running, it’s not residential real estate,” Bellarine Property managing director Christian Bartley said.
“The stock market, for example, is more volatile and much more likely to keep you on the edge of your seat – but the very reason it’s more exciting is that the risk is greater.
“The highs and lows of the stock market are more dependent on the vagaries of global economics – and predicting with any certainty where the gains are to be made requires a lot of time and expertise.”
He said that residential real estate, on the other hand, doubled in value every seven to 10 years.
“Records kept in Australia for 120 years and in England for 900 years show these figures are consistent over the macro time scale.
“While it is true that at the micro level there are times of negligible or even negative growth (in the 1930s Depression, for example), the following years usually show huge growth so that the average remains constant at 10 per cent and values double in the seven- to 10-year time frame. Which is why real estate is predictable over the long term, even boring.”
Mr Bartley said more and more investors were deciding that they can get their kicks from something other than their investments.
“They prefer to start their investment portfolio by doing their homework and making a prudent buy – then they sit back and wait for the long haul. Not as exciting, perhaps, as rushing to the all orders, but a lot less time consuming and much more secure.”
For more information, phone Christian Bartley on 0410 695 325, email firstname.lastname@example.org or head to bellarineproperty.com.au.