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Instability of Banks Boosts Appeal of Property Investing in 2023

If you’ve been paying attention to the news recently, then you may have noticed several banks collapsing in the US in the past couple of weeks, which is beginning to cause alarm.

For those not in the know, on March 10th, the biggest failure of a US bank since the global financial crisis of 2008 happened in real time. Silicon Valley Bank collapsed after a bank run and failed to raise capital, which was the second-largest failure of a financial institution in US history.

Following this, a second bank, Signature Bank, has also shut down, and a third has been propped up. As well as this, Credit Suisse was taken over by UBS, otherwise it would have faced the first threat to a major international bank since 2008.

More than $400 billion has been spent so far to try and dam the river and stop this crisis from spreading further, and by guaranteeing the deposits of Silicon Valley Bank and Signature Bank, the US Federal Reserve has spent over $140 billion.

This crisis naturally has investors worried about where to put their money. Savings accounts have traditionally been known to be the safest way to invest large sums of money thanks to the stability of banks, and industry experts believe that more will follow.

If this stability is taken away, what is a safe investment for large amounts of money?

The answer: property investment.

In this blog, we’ll break down some of the key ways in which property is a reliable and secure investment, and why you might want to consider your options when it comes to saving vs investing your money right now.