Why Traditional Investment Is Not Safe

Why Traditional Investment Is Not Safe

Why Traditional Investment Is Not Safe

With any investment you're taking a risk; none more so than the traditional investment options. There's an old saying that states, the riskier the investment, the larger the returns. Well this is true with traditional investment choices which make them unsafe to investors. Let's take a closer look at the situation to get a clearer understanding.

Stocks and shares, bonds, property and pensions; these are all being shunned by professional investors.

The stocks and shares market is proving to be incredibly volatile any political or economical permutation can seriously affect the performance of the market. What's more is that you will need excellent insider knowledge to see any serious returns this can take time and a lot of work. The market hasn't performed very well recently, with a yearly decrease of 9%.

Savings accounts, bonds and ISAs are practically worthless now; any interest rate will be in line with the rate of inflation or just a bit more. If you want any significant return you would have to tie your money up for a very long time, at a fixed interest rate. This makes it risky because your investment wouldn't feel any rise should the Bank of England base rate rise.

Pensions have hit a brick wall too. The poor performance of private pension funds coupled with predicted pension crisis (due to an ageing population) has meant that lots of people are turning away from this traditional investment choice and are looking at alternative options for when they retire.

Finally the property market has slowed down dramatically in recent years. Furthermore is the duty of upkeep that is required when choosing this type of investment. Maintenance fees, contracts, landlord responsibilities it can hard work for a slow and minimal return.

Traditional ways of investing just aren't working anymore. Unfortunately now there's a correlated response when there is any political or economical unrest, the markets go down all together. Take the financial crisis for example; property and stock markets all around the world were affected. Fortunately though there still remains a safe and tangible asset investment.

It used to be a case of, the larger the returns the higher the risk. Well, that was until investors started to buy land for sale and dramatically increased their returns in doing so. Land investment is a safe and tangible asset. This investment choice has consistently performed well over the last 20 years due to significant circumstances that have helped its performance.

These circumstances are due to the ongoing population crisis, especially in the UK. Demand for land is high and supply is low. The Government has to rezone land types to build houses on. Land that is designated for development rockets in value and so investors are strategically investing in land that isn't designated for development but with a medium or long term potential to be rezoned.

Professional investors are turning their attentions to fixed asset commodities, of which land is one. Be part of this safe, consistent and incredibly lucrative investment type.

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