Asset class - property

A long term investment

Property is generally regarded as a long-term investment for a number of reasons. The main ones are:

  1. There are costs incurred in buying and selling a property such as stamp duty, solicitor’s costs and agent fees. 
  2. Property is a relatively illiquid investment, i.e. it cannot be bought and sold overnight. 
  3. Property prices can be volatile in the short term – this means that the price can move substantially up or down, over a short period of time. 

The value of the property is ultimately determined by what someone will pay for it.