What constitutes a ‘safe’ investment?

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In the modern world, we are all looking for ‘safe’ investments with many people having their fingers burnt in the world economic crisis of 2008 and whom are still dealing with the consequences. Investments that were perhaps viewed as safe ten years ago, such as shares in blue chip companies, various bonds and even mutual funds are no longer seen as safe and secure. Yes, people still invest in these financial instruments but investors tend to be far warier.

History proves that two of the most secure long term investments are gold and property. The common denominator with both investments is that they are tangible and can be physically touched and seen. Whilst this doesn’t guarantee that they are safe, it does give investors a sense of reassurance having lost faith in share certificates and money that is invested in well-known banks that have sadly fallen on hard times.

A safe investment is something these days that comes with as much protection as possible, something that has a secondary usage other than just being merely an investment. This is something that property has, after all, its original purpose was to be live in and indeed in the worst-case scenario, an investment property can be lived in, although in truth, this is not a practical solution for most investors.

So, when an investment such as the like of New Nordic’s 10% p.a. guaranteed rental return for anything up to 20 years comes along, there is little surprise that investors are sitting up and taking notice. The developer has a proven track record when it comes to successfully managing such schemes, has sufficient cashflow to be able to support such a scheme as well as having very realistic occupancy targets that need to be obtain in order to meet all obligations. In short, it appears to be the perfect business model.

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The fact that the there is a rental guarantee, plus the fact that you own a property in a city that’s is currently booming suggests that the New Nordic offer is a ‘safe’ investment. Indeed 10% p.a. returns are impressive in anyone’s eyes so to add the security that the group has offered just increases the appeal of the investment. In today’s turbulent economic times everyone should be delighted with a return of 10% p.a. especially in an investment that offers minimal risk. Perhaps the New Nordic offer is the investment that could finally constitute safe?