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Seen as good investment because property prices tend to increase in the long-term. But its risky because prices can fall in an economic downturn and its not easy to sell the asset at such a time Companies, govs and other bodies that need to borrow money issue bonds. Investors lend their money to the issuer by purchasing the bonds but they're lending money to the company and so they are creditors and not part-owners, as shareholders are. Shares = equities 2.5.4 - property Many people see their house as a long-term investment. Some people buy additional properties by taking out a buy-to-let mortgage. They can rent out the properties to give them an income, which they hope will cover the mortgage repayments, and they can benefit from any increase in the capital value of the properties. This type of investment is seen as quite risky in the current economic circumstances and buy-to- let mortgages have been more ifficult to access since the financial crisis All bonds are a way in which the banks / companies can borrow money from the purchasers of the bonds. Fixed-term savings bonds are a type of long-term savings account where the capital sum is safe whereas bonds issued by the gov and by companies are traded on a financial market and their values fluctuate 2.5 - INVESTMENT PRODUCTS - ASSETS Bonds are normally issued for a specific period of time: at the end of that period, the bond People can also invest in other assets including commodities. These may offer the potential for very high capital gains but they're risky and are ...
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