5 Reasons Why We Must Choose Property Investment
Although there are many choices for investing, property investment is one of the favorites. There are at least 5 reasons why we must always invest in property and not other kinds of investments:
1. Relatively low risk
In general, investment in property isn’t like investing in the stock market where costs in one day will go down and up quite significantly. Only in certain situations where the economy was bad, property investments is also affected slightly. Compared with other investment types, like opening a business, saving money on deposit or invested in stocks, property investment contains a lower risk than those investments. If we look at the risk compared with income potential, the property includes a relatively low risk with smart potential income from rents and capital gains.
2. Two sources of income: rental and capital gains
Property investment offers a combination of rental income and capital gains. Investing in property isn’t only going to give us a positive income but also the potential capital gains depends on property price increment.
3. Full control to increase the value of property
If you have a property, you have full management of how you’ll increase the value of the property. There are many ways that may be done to increase the value of property, starting from very simple things like painting the property. Other ways are to buy a few accessories or cosmetics, and renovations. These activities are important especially when we want to rent or sell property. Some individuals do small renovations to increase the value of the property so that owners will sell at costs much higher.
4. Safe and sure investment in the long term
Property prices usually will not fluctuate so much. In general, it may take some time for property prices change over time. This is different from the stock market for example where prices can change dramatically in the evening.
5. Become rich through property
Property investment will bring individuals to become truly rich. The key to wealth in property is through capital gains. for example, someone is investing in an apartment for $500K price with a deposit of $50K. Monthly rent of the property enough to pay the bank monthly installments, so automatically, financed by a bank installment monthly rent. after 20 years, the property has been paid fully and the price has been appreciated as an example, to $1M (this is conservative, because the property prices normally can increase triple or perhaps quadruple in twenty years). In this case the net benefit from investment ($1 M – $50K) = $950K. If this person has three apartments and a total net profit would be nearly $3M in twenty years. This guy extremely has become a rich person with property investment.