S&P500: 300%up/13%down - Property Developer Logic - storm in a teacup

LONDON - March 2, 2020 - PRLog -- Let's put this US stock market into perspective through property investor logic.

Let's say you purchased a property in 2009 for £845,000. We don't blame you for not investing with DevDosh Ltd, it wasn't around in 2009.

The property is in a lovely area but there can be a few issues with local amenities that can effect property values. But overall it's a solid house and the neighbourhood is great.

So you are happily enjoying the property with your family and the value is slowly creeping up as it should and as we all expect it to.

By 2011 your property had increased in value by around 60% and now it's worth about £1.35m. Unfortunately there were local issues and property value dropped by about 14%. It didn't really bother you and the property went back to doing what property does which is increase in value as an asset.

From March 2015-2016 the house market (in this town) was volatile but by the years end your house price was back and going up in value consistently.

Fast forward to 2018 and your property is worth £2.8m. The place has been maintenance free since the day you moved in. Unfortunately, there was a bit of trouble with the council  and it made the whole area drop in value by 16%.

Last week your property was worth a whopping £3.39m, it had gone up in value by 300% in the last 11 years; and would you believe it, local bank is reducing a service in the area and prices are being hit again. All property values dropped by about 13% last week.

As that property owner are you really worried? Your property is up 300%. If you sold it, even at a 13% discount is it really that big a catastrophe?

Please bear in mind this is a commentary on the US S&P 500 and not opinions about Corona or the suffering it is causing around the world. Obviously, those people have our love and prayers.

However, as far a stock market plunge and investors losing their shirts is concerned, this is a very manageable situation for investors. In the big picture a 13% drop on a 300% profit is not a collapse. It's a bump in the road to continued success.

Of course, and as my blog's always end, if all this financial mumbo jumbo and brain work is just not on your life agenda then contact https://devdosh.com today. We will put you into out fixed interest investment product which is the safest 10% pa yield in the current market.