Smart Investing: Turning Crisis into Opportunity
Despite the recent spate of bad news from the United States, the Asian region has for the most part been much less affected. Reports from the Banko Sentral ng Pilipinas (Central Bank of the Philippines) indicate that Philippine financial institutions remain solid.
Despite the recent spate of bad news from the United States, the Asian region has for the most part been much less affected. Reports from the Banko Sentral ng Pilipinas (Central Bank of the Philippines) indicate that Philippine financial institutions remain solid. Even those banks that have investments in ailing companies in the United States have been careful not to over-expose themselves in the U.S. market. This is because ever since Asia experienced its own crisis in 1997, financial institutions here have taken very conservative positions on debt and investments as a major part of their business strategies.
In general financial instruments such as investments can have a very wide "volatility factor". The value of this type of investments can rise or fall dramatically in a very short period time depending on the confidence levels of economic managers and the general public. The problem is, confidence levels can swing wildly whether the basis for the rise or fall of investor confidence is real or not. This can make many financial investments risky.
A hard asset such as real-estate can provide a much more stable and reliable investment - for those who can afford it. Prime properties tend to perform much better than property in general. A comparison of Ayala Land Premier property values show that over the last 9 months, these properties have consistently out-performed the stock market and government treasury bills.
What many people do not realize is that prime real-estate also has a unique value-feature; when times are bad values are much more stable than many other investments. When times are good, property values can rise very, very quickly. Why does this happen? This happens simply because property is a finite resource. There is only a limited amount of it in the world - but demand for property is always rising so the values of prime property are driven up naturally.
Property is a smart way to invest while enjoying the benefits of your investment -- by living at a great address, earning from rentals or managing your wealth for your dependents future use.
written by Tom Mirasol
DISCLAIMER: The data presented here is true and correct. The opinions expressed herein are my personal thoughts based on available research material. Readers are encouraged to seek the advice of trustworthy investment advisors before making any decisions.