For centuries the benchmark for worth in the world economy was gold. The so-called “Gold Standard” was in place until the 1930s.
In some countries, it was considered safer to keep your wealth in your mouth in the form of a gold tooth than deposit it in a bank.
Gold still continues to be a safe place to store your wealth, but it doesn’t earn interest or grow, and it’s not very practical to use or wear if is worth a lot.
The stock market also became a popular benchmark of value in the 20th century, analysts boasted that stocks and shares can increase more in value on average other short spans of time than property or other assets.
Although there is some short term truth to what they say, their optimism bursts along with the bubble every time there is a market crash. And you can’t live or vacation in a share certificate.
This brings us round to investment property. Investment property, has traditionally been viewed as the realm of the rich. Images of investment property tycoons spring to mind.
But as we move on into 21st century, it is not just the wealthy that are buying investment property, it is the safe haven for the riches of the middle class too.
The trend is led mainly y so-called “baby boomers” who are coming to retirement age and looking to keep their saving safe, but still working for them. On top of this, investment real estate – at home or abroad – can also provide a lot of pleasure.
Be it a vacation property by the beach or a mountain cabin, near the pistes. An investment property doesn’t just earn you money, it can be great fun!
As we see an increasing proportion of the developed world’s population buying real estate investments we can expect to see a shift in the use of economic benchmarks. More weight will be given to the value of the property market and less to precious metals and even stock markets.
Indeed, don’t invest in gold when you can earn more and vacation by the beach with investment property.