Buying a property is no longer a dream with the available housing schemes, such as PR1MA, and so on. Are you also planning to become a property investment? This article will guide you through the reasons in getting into property investments. Property investment is a tangible investment as it is something that you can see, feel and own as compared to stocks investment, whereas stock investment is considered a high risk investment strategy, as it depends mainly on the economic sentiment along with the company performance. There are some reasons on why you should consider venturing into property investment:
2. Great place for capitals You have total control of your investment and property investment offers you with options in terms of growing the value of the property. That being said, you can control and decide when to sell your property for capitals whereas stocks and bonds investment can be tricky, as you have no control over them. 3. Great base for financing more investment opportunities Property investment allows you to have a strong base to finance other investments that you are interested in. You will also need to look out for several factors before deciding to jump into the property investment bandwagon: 1. Type and size of property The type and size of property will attract different tenants. For example, students will only need a room where they are able to sleep and study whereas a family will definitely need a bigger space for their children and privacy. 2. Rental returns You will also need to do your research on the average rental values of properties that are similar to yours in the same area, in order to have a rough estimation on how much your property can fetch. As you need to pay for the mortgage payment, taxes and miscellaneous fees, you will need to charge a rental fee that will be enough to pay for your costs. 3. Emergency plan Not forgetting an emergency plan, you will need to ask yourself if you are able to manage your finances if there are losses incurred. Cash flow is the money that you make from your rental properties every month. That being said, your cash flow will increase over time as the rental yield goes up along with inflation while the mortgage payments remain the same. However, there is also a risk involves when your property is vacant and you do not have any cash flow. In conclusion, property investment is not easy and is definitely not a scheme for you to get rich quick, but it can be promising and will allow you to retire early. Property investment takes time and effort to make it work and the sooner you start, the easier it gets. Nonetheless, property investment is considered a safe investment option as compared to buying shares or bonds.
3 Comments
3/27/2023 09:56:10 pm
I appreciate you saying that you have complete control over your investment and that real estate investment gives you options for increasing the value of the property. My sister wishes to undertake the investment. I will tell her to get the estate property as an investment.
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11/22/2023 02:52:35 am
In Anglo-Saxon law, real estate was land held by a person under the king's peace, who had the right to exclude others. The Norman Conquest introduced the feudal system into England, in which all lands belonged to the king, but were held in fee by his chief tenants. These tenants were required to provide military service in exchange for their property. The concept of property developed during this period https://turkishclassified.com
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