Property investment can be said as one of the investments that never die. Try to look back from generation to generation, property investment is a measure of one’s success.
Property Prices Almost Always Increase
Properties either in the form of land or existing buildings almost always experience an increase from time to time. Why? This is because the demand is more than the existing supply. Meanwhile, the earth’s population is increasing and they need a place to live/business. In fact, did you know that the increase in property prices exceeds the increase in inflation. Therefore, there is no loss in buying property.
Of course, investing in property is also not arbitrary. The only way out is not simply to sell in the future and get the difference. You can get unexpected benefits by property investment.
Sell it later
As already mentioned, one way to make a profit on property investment is to sell it. Considering the price that always rises sharply from time to time makes the difference in the price of your property soar.
If it’s a shame to sell it because after selling it means that your investment stops there, another option is to rent it out. Whether your property is in the form of land or there is a building, renting out the property provides its own advantages. You can benefit from time to time as long as the property is used by others for an indefinite period of time while the status is still yours.
As collateral for loans
There’s something else that’s most enjoyable about owning a property. You can start another business and get capital. Most lending banks or other credit institutions give priority to loans for those who have property collateral. This money can be replayed in other forms of business or if you want to invest again by adding property.
Routine cash flow potential
As long as you wait for property prices to increase, you can take advantage of that waiting period by renting out your property so that cash flow is stable. For example, a home property with a price of 1.5 billion, may have a rental price of around 10 million to 15 million per month. The rental results that you get can also be used to pay off bank debts if you make a loan to the bank.
Can use other party’s capital
Banks can provide loans to you to finance the property you want to get. For example, you want to buy a house at a price of Rp. 500,000,000, you only need to spend 20% to 30% of the price, the rest you can get from a bank loan, and the house you buy will be a guarantee to the bank.
Long term investment
Compared to deposits, gold or other investments, property has a durable character. The property business has an average investment horizon of 3-5 years. That is, after 3-5 years of value development is significant enough to generate capital gains (the difference between the purchase price and the selling price).
By looking at the profit opportunities from this property investment, we should think about this endless investment. Especially if you can see areas that have the potential to experience rapid development in the economic and commercial fields. Unspoiled areas but are predicted to develop in some time can be the best choice for your property investment .