Redwood: How solid are bricks and mortar?

COMMENT

I used to like property investment. Prior to 2007, property did what I wanted; it was often less volatile than shares, but more exciting than bonds.

The rental income was fairly reliable, and it often grew. Rents have to be paid before dividends when times get tough, and rent reviews often lead to higher rents in the good times. Property income can be mid-way between interest on a bond and dividend on a share. UK property did well. Tight planning controls created artificial scarcity, and investors benefitted as a result. I changed my mind in 2007. The likelihood of high interest rates and tough monetary action was bound to bring down property prices. The asset bubble had pushed property values up just as surely as it had pushed sh...