Luxury expert: Beyond speculation in luxury real estate
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It is quite common, particularly in the domestic media, for property investors to be labelled as “speculators”. This makes me every uncomfortable, as in essence, anyone who puts money into something is, of course, looking to make a profit.
The problem comes when defining different investor’s approaches and this includes looking at the way they handle their portfolios. Traders on the stock exchange, for example, tend to be far more speculative than property investors. They buy and sell company shares in a single day for short-term profit, yet this is considered acceptable in that sector
of business.
I agree that for the sake of market stability, it is best to avoid too much short term property investment – say less than 3 years – but in Asia especially, property assets are an increasingly important part of any investment portfolio, especially with regional investors who have lost a lot of confidence in purely financial products, and are therefore switching their focus to more physical assets.
