No Nonsense : Why do we buy Property ?

The point to ponder is that usually accepted real estate investment reasons such as for investment profit, rental income, wealth, good location, good property management, good building design, good accessibility, even favorable market conditions, and the like, are more on surface veiling and protecting the human desire for warmth, security, and safety, and feeling of pride, achievement, and success. Things that don’t meet the eye and can’t be touched, but noticeable, can be more significant that what can be seen.

Even though to date, there are no verified methods yet to statistically and scientifically classify, watch, bring together, compile, or examine the intangible aspects with any acceptable degree of implementation

It’s interesting to note that most people prefer to invest in real estate more than other forms of assets such as stocks because they feel more secure with real estate, which offers a ‘tangible’ form in terms of steel, bricks and mortar, thus offering some utility e.g. shelter even if it loses its paper value. Forgetting this ‘utility’ bit for a while, real estate could be worth nothing in theory, or even has a negative value yet in practice this is seldom possible if not impossible.

Convinced that private ownership has become essential to smart living, buyers bid up home prices. Moreover, the fear that one must get in on the boom before it is too late often drives people to bid up home prices faster now. Real estate booms have been going on in these countries’ major cities for years. But the boom generated by such beliefs cannot go on forever, because prices can’t go up forever.