Many people say property investment is better than investing in the financial sector. However, apparently, each has advantages and disadvantages. Knowledge of this matter is very important for an investor so that prospective investors can consider steps to anticipate losses and add value to the property. Going to temukan ini
can be the right decision, even more, if you want to get the following advantages of investing in property.
1. Added Value
Value-added investment property is obtained due to the development of buildings on a piece of vacant land. The added value will be even higher, if the building is in a strategic location with good access and facilities, and is made with beautiful architecture.
2. Income Appreciation
From a plot of land developed — vacant land into a house or shop — an investor can receive rent. Another advantage is the increase in rental prices because the nature of scarcity of land and property will continue to occur as long as the economy in a country continues to grow.
3. Capital Appreciation
Appreciation of land value is another advantage of property investment. The number of people at any time continues to increase, while the amount of land cannot increase. This is a classical theory that simply explains why land prices continue to crawl up from time to time.
4. Long-Term Investment
Compared to deposits, gold or other investments, the property has a long-lasting character. The property business has an average investment horizon of 3 – 5 years. That is, after 3 – 5 years the development of its value is significant enough to generate capital gains (difference in purchase price and selling price).
5. Hedge of Inflation
Traditionally, individuals buy land and buildings to keep these investments from being eroded by inflation. That is, the owner is sure to buy property, the value of the investment will not fall as the value of the currency eroded by inflation. Even because of the nature of scarcity, the value of the investment continues to increase over time.