• The UK property market has historically been a safe bet for investors and has outperformed crypto in 2022.
• Although property prices are generally resilient, there are still economic headwinds that could dampen the rate of house price growth.
• Bitcoin offers more options when it comes to dealing with economic turbulence and may be a better long-term investment than buying a house.
Pros of Investing in Property
The UK property market has traditionally been seen as a safe bet for investors, with house prices going up year on year since the 1960s. This trend continued even during 2020’s deepest recession since the 1930s and despite the impact of Covid on the economy. In 2022 alone, house prices went up 10.4%, while bitcoin dropped by 40.9%.
Alice Bullard, Managing Director at Nested estate agents stated “the UK Property Market has not only posted a strong and steady performance in recent years but has outperformed two leading crypto coins on an annual basis, despite economic headwinds dampening the rate of house price growth seen towards the back end of 2022”. However, there is no mention of what economic headwinds have done to the crypto market or how bitcoin has regularly had bull and bear cycles which could suggest that property is overvalued and forming into a bubble.
The Benefits Of Bitcoin
Bitcoin offers more options when it comes to dealing with economic turbulence due to its consistent bull and bear cycles which makes it easier to adjust investments accordingly if needed. Furthermore, having wealth tied up in a 25-year mortgage may not be ideal should people need to adapt quickly to sudden changes in employment or other factors related to their finances.
Is Investing In Property Still A Safe Bet?
Despite all these considerations, investing in property is still seen as being one of the safest bets out there when it comes to investing your money for the long term – however it does come with risks such as interest rate hikes that can make mortgages difficult to pay off over time as well as potential bubbles forming in certain areas of the market depending on local economies etc..
At the end of day it really depends on personal preference – some people may prefer investing their money into something tangible like bricks & mortar whereas others might see Bitcoin or other cryptocurrencies as being better suited for them depending on their risk appetite & financial goals etc..