Is it right to encourage property investment?
As we touched on above, the fact is that at some point in all our lives we will need to consider property investment whether this is an outright purchase or renting. Many people are oblivious to the risks associated with property investment when they move into their working life – a time when they will likely have more money than ever before. There are obviously companies and individuals we can all approach for advice but the best advice is to do your own homework and be aware of the risks and rewards from an early stage.
Could this encourage entrepreneurs?
Some people believe that entrepreneurs have that spirit in them from day one and it is something you’re born with. However, there is no doubt that an individual who is driven and has an interest in a particular area of business can become something of an entrepreneur in the future.
Surely there is nothing wrong in making children aware of property investment, real estate markets and the risk/reward ratio associated with these markets. Whether or not people are in a position later in life to use their knowledge of property investment and the risk/reward ratio is another matter but surely to be forewarned is to be forearmed?
More demand for property
Over the last 50 years or so we have seen a dramatic increase in the number of individuals investing in the worldwide property market. This is likely to continue well into the future whether directly into property or indirectly via property companies and investment funds. As the Earth’s population grows there will be more demand for property and indeed innovative housing solutions will be much sought after.
You only need to look at any one individual property market to see the range of styles available, the cost and also the demand. We have gone through an array of different property cycles in recent times taking in such factors as eco-friendly/green credentials supported by various financial incentives from governments. Slowly but surely some of the land which has previously been off-limits for property investment is becoming available with greenbelt land reducing year-on-year.
There is no doubt that property will play a major role, whether directly or indirectly, in the lives of everybody. Introducing the concept of property investment and renting at a relatively early stage in the education cycle could prove very beneficial to all parties. Even though there is an enormous amount of information about property investment on the Internet it is still something of a mystery to many people. There is every chance that introducing the idea of property investment to older children/young adults will create more entrepreneurs in the future and greater demand for property.
Perhaps this is an opportunity to reduce the number of financial scandals which very often blight the mortgage industry and the banking sector?