Property

In recent years, investment in property has hit the headlines. Two sites that I use to keep up to date with property investment are:-

1. http://www.housepricecrash.co.uk which focuses on the UK property market, ostensibly highlighting news that would be negative on the market but covers all angles. It comes complete with charts showing how the property market has worked over the last 25 years (includes 2 cycles) and there is a link to the Nationwide site where property prices are recorded going back to 1952.

2. http://www.globalpropertyguide.com/ covers how well most of the world's property markets have done in the last few years as well as potential rental yields, legal issues, strength of the market etc.

The good things about property investment, as opposed to stock trading, for example, is that the market moves in cycles so at least you know if the market's frothy or bearish (at the moment, it's average but likely to drop further based on historical evidence). The bad things include:-

1. It's generally a leveraged investment i.e. most property is bought with a mortgage.

2. There are relatively high initial costs e.g. solicitor, estate agent.

3. You are taxed on your gains

4. It's an illiquid asset i.e. it's hard to shift when the market turns.

5. When buying abroad, you'll have to deal with different legal systems and planning laws, potentially more illiquid markets than the UK with less information available, you may also be reliant on airlines to take you to your property.