I'm back to my blog and feeling very dismal that I am not spending more time at it - there is so much going on in the property market. The question has been asked of me several times, by skeptical clients about the numbers of property today - and why property over another investment. I have started asking - why not property over another investment? For so long, may financial planners have been lauding the virtues of property investing. Similar to equities - property prices were skyrocketing. It was almost a sure thing - perhaps for a few years better then equities for returns. The 'sure thing' was concentrated around the spectacular rise in property values, and had nothing to do with the performance of the property. Now, when property is at it's lowest in 10 years, and it can perform, investors are cautious. It's my humble opinion that we, as a society, stopped thinking of our assets as vehicles for financial performance, and, instead as vehicles to gamble with. Also, stocks have been perceived as easier, and over the long run - more lucrative. We now know that to be untrue - it's just unfortunately that we've shed billions of dollars of wealth gaining that little nugget of information. That said, equities still hold sway over property investing. If I pose the below numbers as equities - I receive enthusiastic yes's about purchasing - if I pose these returns as property - I get looks of skepticism. Yet the numbers I pull are actual examples, and are available all over the USA, every day of the week. Here are a few numbers:

The numbers:
1. Initial cost - $57,000 (property)
2. Additional investment - $20,000 (renovation)
3. Total Investment - $77,000
A Sell - $99,000 (Lease with option to buy)
B. Dividend - $850.00 (monthly lease payment for 12 months)
C. Immediate Cash Bonus - $3000.00 (down payment)
Adding the Returns:
1. Annual growth - $24,000 31% ROI (Equity at closing)
2. Total Dividend - $10,200 13% (Lease payments for 12 months)
3. Total Return - $34,200 - 44%

Risky? I don't know - this happened to be my own investment - I've many others similar, and I produce like results for clients - but I do know this....with the equities world upside down, and property values at levels where the assets can now perform at extra ordinary levels, I'll invest in property all day long.