People who make the right decision in investing money stand to earn high
rewards for taking such a calculated risk. However, this decision
should be made only after doing a thorough search on the various
prospects in the diversified field of financial investment.
Investing in property is one of the surest ways to reap rich benefits
out of your investment. Here are the top five reasons explaining why you
should invest in property.
1. Property prices are always on the rise, and investing in a property
which you can lease out, ensures an immediate return from your
investment. This provides you with peace of mind and a sense of
security. As the property appreciates, you can also earn more on the
rent. In case you want to buy another property, you don’t need to sell
the existing one – you have the option to release equity relating to the
property and still retain your ownership.
2. Investing in property enables you to have direct control over the
ownership and for rental purpose, you have the option to increase the
rental income without having to consult others or take permission from
anybody. This differs to shares, where the dividend is not in your hand.
Investing in property also allows you to insure your property against
any damage or loss of rental income. Buy-to-let investors are able to
protect themselves from any financial loss arising out of any damage
caused by tenants, through Landlord Insurance.
3. You do not need any expertise or vast experience when you invest in
property. Every common person can do it, especially when there are so
many sources to gather information about market trends which relate to
your property. To make the most out of your investment in property, you
can increase your return on your investment by buying a property which
needs a thorough renovation. On bargaining, you will be able to purchase
the property at a cheap price and after renovation work, you are able
to sell off at a much higher price. This can cause you to earn more on
your investment in property.
4. Investing in properties provides you with the advantage to use
leverage by mortgaging the property and borrowing up to 80% of the
property valuation. In the case of stocks, you will get a maximum of 50%
on the value of the shares. You get a distinct advantage over other
forms of investment, with no risk being taken. Fluctuations in the
prices of properties are a slow process, where you find enough time to
safeguard yourself from any downfall in the property value. Generally
the cycle is slow, which makes properties less volatile in the market
compared to shares which may have a steep downfall involving heavy
losses.
5. The tangibility of a property is the main advantage of the investor,
where the person is able to see and touch the property. Moreover, in the
case of urgent requirements of money, the property can either be sold
or mortgaged within a short time. In the case of shares, you will find
it difficult to transfer your shares, especially when they are dipping.
You are able to invest in properties according to your budget. If you
have a big budget, you can go for premium properties which will give you
higher returns within a short span of time. In the case of a small
budget, you can choose from various categories of property. This is not
the case in stocks, as there is a binding as to the minimum number of
shares you have to buy. Investment in properties at residential places
which are developing provides you with the advantage to reap rich
benefits once the area is fully developed and the basic amenities are
provided. You can also buy a property in such a place where there are
future plans for providing large scale public utility services. In such
cases, your property suddenly receives appreciation in valuation.
Investing in property is a wise move which involves minimum risk with
possibilities of maximum returns. Select the right real estate agent to
make your investment and gain high returns.
