In my view yes, very much so. The main upside is that tax lien properties are much less liable to intense market fluctuations than other types of investment.
If you invest in, say, fine art or antiques, the artist or furniture-maker you have confidently backed may well go out of fashion. Property is vastly less subject to the vagaries of fashion and style than most other commodities.
A further point is that it is relatively cheap to borrow money to buy a tax liens property. Mortgages on your own home constitute very low-interest loans, and even mortgages on buy-to-let or investment properties, while higher, are still lower than loans for other types of goods. This is because property is generally seen as good security for the lender, and mortgage providers will not usually advance more money on any property than they believe it to be worth – and what they could get for it on repossession, come to that.
So, lending money for property purchases has come to be seen as safe for the lenders. This is in itself an indication of the relatively low level of risk in property investment; lenders are actually falling over themselves to lend you money to buy ever more property. You might find it hard to raise such a cheap loan to buy a cellar full of vintage wines, or Lord Montagu’s collection of antique cars or, indeed, any product where it is not easy to determine resale value.
These are the main advantages of investing in property but overwhelmingly, the greatest appeal is that with property, you remain in control. You do not abdicate the care of your valuable investment to fund managers who may not have your best interests at heart. It is up to you to buy, sell, rent, upgrade or whatever.
But in general and historically, you the owner are responsible for your property. Yes, you have to look after it and yes, owning property can certainly cause anxious moments and sleepless nights. And you cannot control every aspect of your property investments, such as freak weather conditions or neighbors from hell. But while you are the owner, a property remains yours. It is fun, creative, challenging and exciting to invest in property. I have been doing it for many years and still get a thrill from it.
Tags: lord montagu, low interest loans, market fluctuations, tax lien certificates, tax lien properties, vintage wines