The Benefits of Property Investments Compared to Other Investments

Property InvestmentFor those of you who are planning to invest, you’d better to think about it thoroughly so that you can invest in a proper way. Moreover it is essential for you to select the right kind of investment. For example, when interest rates are high, you are suggested choosing the type of financial investment like in stock. Conversely, if interest rates are low, you should choose a property investment that has a large capital gain. For those who want to continue investing without being influenced by changes in interest rates, property investment is the right choice for you. Here are some of the advantages of property investment you need to know.

1. Income
If you choose a property investment, you will get income from selling or renting property on the client. The property can be in the form of house, land plots, shops, apartments, and many others. The rental price or the sale price of your property is determined based on market prices. Or, you can set the price based on the client’s ability to pay its obligations.

Compare it with other financial investments. The income you obtain is in the form of interest. Meanwhile, if you are investing in stock, then your income is the dividend that will be given every year. In conclusion, the benefits of property investment is much more defined and bigger because there is always an increase in property value.

2. Value increase
Because it is the rare or limited, the price of property such as land and buildings is almost certain to continue to increase compared to the prices of other goods. Something rare will affect the value of the thing itself. You can compare it to other financial investments such as stocks. The stock value will go up if the company’s performance is considered good. But if the company has a poor performance, the value of the stock price will decrease.

3. Protection against inflation
The rate of increase in property price each year is much higher than the rate of inflation.

4. Investor’s control
You as the owner of the property and at the same time the investor has full control over the property you own. For example, you can sell, hold, construct, improve, or rent one of your properties to the client. Meanwhile, the other investors can only buy, hold, and sell financial investments only.

5. Leverage
A property investment has a high leverage. For example, with a capital of $ 10.000 you can buy a property of $ 50.000 with the help of a bank loan.

Image credit: propertyupdate.com.au 

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