Published on 03-22-2010 01:51 PM
Number of Views: 2751
Here are some reasons why to choose property investment.
# The power of "Leverage"
To invest in our properties have the option to not use 100% of our money, but by using other people's money (OPM). One of the most common source is the money the bank loans.
# Relatively low risk
In general, investment in property is not like investing in the stock market where prices in one day can go down and up quite significantly. Only in certain situations where the economy was bad, property investments may be affected slightly.
# Two sources of income: rental and capital gains
Property investment offers a combination of rental income and capital gains. Investing in property is not only going to give us a positive cash flow but also the potential capital gains depends on property price increment
# Full control to increase the value of property
If you have a property, you have full control of how you will increase the value of the property. There are many ways that can be done to increase the value of property, ranging from very simple things like painting the property.
# 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.
# Protection against inflation
Unlike a savings or deposits where interest is given is usually much lower than the rate of inflation, property prices usually follow at least the inflation rate. In this case, investing in property is still a better option to protect them from inflation.