Theodore Roosevelt is reputed to have said that ‘buying real estate is not only the best way, the quickest way and the safest way, but the only way to become wealthy’. Certainly land and property seem the very epitome of financial security. The value of property is much more stable than shares whose prices are subject to the regular antics of the stock market, and it has proved more enduring than government bonds, some of which have lost more than 98% of their real value in the post-war period. Arguably, property is the most secure of all marketable investments. Yet within the last twenty years the hub of the UK property market in central London has lurched into two monumental booms and crashes. Both cycles have featured deregulation of the financial markets, enormous surges in bank lending to property, relaxation of planning controls, unsustainable economic activity, escalation of interest rates, a plunge into recession, widespread company failures and the downfall of the two prime ministers responsible.
Unable to display preview. Download preview PDF.
- 1.Investment Property Databank (1991) IPD Property Investors Digest (April).Google Scholar