Currently, there are many types of investment that you can choose to prepare for the future. There are investments in gold, stocks, mutual funds, to property. Many business actors are looking at property investment because it provides many long-term benefits. What are the advantages? Follow the full discussion on this basis, yes.
What is Property Investment?
First I want to explain, well, what is investment?
Investing is a way to multiply money without extra effort. Only by making investment investments, so that the funds spent early will grow.
On the other hand, property investment is one type of investment whose value is normal. Moreover, it increases from year to year. The form of capital is similar to other investments by linking the purchase and sale of sets. The only difference lies in the type of legacy that is managed.
What are the Benefits of Investment and Property Business?
There are several advantages of investing and property business that you can consider as an option. Anything?
1. Property Price Increase
Property prices are always going up from year to year. This can avoid the effects of inflation. On the other hand, if you equate it with stock investment, the value of the stock will only increase if the industry’s performance is good. If it is not good, it will affect the stock price to go down.
You can observe the population growth rate that continues to increase. It is clear that the demand for housing will continue to increase. Imagine if the availability is limited, the demand will automatically increase. So that the price of houses or land becomes expensive.
2. Resist the Threat of Inflation
In the past, we bought a house as a fulfillment of primary needs.
If it is now, it’s a different story. There has been a shift of interest in which the property business is a form of investment in order to withstand the threat of inflation.
So, by buying property, the value of the investment will not decrease like the value of a currency eroded by inflation.
3. Fixed Income
If you choose property investment, then you want to get income from selling or renting property.
For example, you rent a house, rent, or boarding house until you want to earn income.
Try to compare it with a financial investment. The income you get as an investor is interest. If you choose stocks, then the income you get is the dividend to be given each year.
That is, the profits from this property business are much more certain and large because there is an increase in property value.
4. Have a Large Capital Gain
When you want to sell the property again, it can be very profitable because it has a large capital gain.
Later there will be a fairly large price increase. Especially if it is added with supporting aspects such as a strategic position, close to public facilities, places of learning, and others. This is what makes a large capital gain.
5. Can Be Collateral When Applying for a Loan
One of the advantages of the property business is the ease of obtaining a loan at any time if you need it.
When you want to make a loan from a bank, usually the bank prefers collateral in the form of property because it is more promising. Its legality is also ensured by law, so that its value can also increase according to demand.
6. Having Control as Property Owner
You, as property owners and investors, have full control over your property. You can sell, build, hold, renovate, let alone rent.
Compared to financial investors, they can only buy, hold, and sell their investments.