Tuesday, April 23, 2013

Property investment- does it still make financial sense?


Investing in property is a good way of putting money into something worthwhile. By investing in property, you can get more profit without sudden losses or many other risks associated with other types of investment. Due to this, more people have turned to investing  in property over the years.

If you think over the difference between investing into share market and property investment, there are limitless choices in which you get to make money. If you buy A-grade shares in bulk, you will definitely see cash flow and improve your financial status. Internationally renewed shares have many options, if the local market gets saturated it can spread overseas. Therefore, your profit is not affected. In the same way, if you buy a house at around $200K and at the peak market price, if you sell it at, let us say, $500K, you gain huge profit and can settle down happily.

So you get profits either way, but when you spend money in property buying you get many other advantages. The primary advantage is that the price of property remains stable and you can be assured about your future investments. You will not be at a risk of losing all your investment suddenly.

Although experimenting in the stock market can give you very high profit in a short time, there is very high risk, as you can gain high profits and also you can lose completely. Stock prices are highly unstable and keep on changing depending on the economic condition of a country; even the political and social sectors can affect the market. Besides all these, markets change on a daily basis and you need to watch them regularly. To gain profit, you need to foresee the coming profits and losses. This requires great concentration, regular study, and experience.

In  property investment, you will get stability and steady income. You might not get sudden huge amounts of profits, but small profits are consistent. You can rent your house and get continuous income from it. You can increase or decrease your rent as required and according to market prices.

Value Control:

Due to the stability of the property market, you are in control of your investment. When the prices increase, there is less fluctuation and you can attract many buyers. You can add new and modern features in your house, redevelop your property, and add many amenities, which will automatically attract consumers. You need to spend some to gain more. You can add new furniture and increase the value of your investment.

Investment with low risk:
In spite of all of the many downturns in the market, the property market is still low risk and relatively stable. This means that over the time, the chance of losing money is very low, and you can always wait for the market to rebound and in that time, you can always rent your house to gain short-term profits. You must know that this is a kind of investment which involves some level of risk; it can vary in the range of high or low.  But this is a chance to grow and also have stability.
All in all, property investment gives you good monetary growth. Property prices typically increase in value from the day you buy your house; therefore, you can earn money from it. You can sell the house at double the price from what you have bought it. The prices definitely grow as the years pass by. Therefore, you can buy a property in the area where the prices are low as compared to others. You can also consider buying property when there is a downturn in the market. You can later sell it at higher price when the market goes up. This will give you a chance to earn double the amount of money. All this clearly portrays that property investment does make financial sense.


© Global Realty & Investment Corp 

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