• The UK property market has outperformed the two leading crypto coins on an annual basis in 2022.
• Property prices have risen rapidly since the 60s, with only one real blip seen in 2007 to 2009.
• Despite this, investing in a house may not be the best strategy due to economic turbulence and potential changes in employment, prices and other factors.
The UK Property Market
The UK property market has generally been on the up for decades, with house prices rising rapidly since the 60s. This has been despite deep recessions such as the Great Recession of 2007-2009 and more recently Covid-19. In 2022 it was shown that house prices had gone up 10.4% more than the previous year compared to crypto which dropped 40.9%.
Advantages of Buying a House
Buying a house is often seen as one of the safest investments you can make as it’s „as safe as houses“. It also provides something tangible to your name and can provide stability for many years if you are able to survive any interest rate hikes that would make paying off your mortgage difficult.
Disadvantages of Buying a House
However there may be some drawbacks to buying a house, particularly when considering other investments such as bitcoin or other cryptos which have regular bull and bear cycles but could potentially outperform house prices over time – especially during times of economic turbulence or sudden changes in employment or prices etc.
With all this history of price rises it’s possible that property is now overvalued and that a bubble has been forming for many years – making an investment into property riskier than perhaps initially thought.
Overall it appears that whether buying a house or investing into cryptocurrency is ultimately down to personal preference – both have their advantages and disadvantages depending on individual circumstances but with money available to be spent there is no definite answer as to which will perform better over time