Investment in property is still a choice most people, because people assume that it is one of the best ways to develop money. In general, investment property is considered more secure than other types of investment. The reason you own or manage the investment, so you can control almost everything. But this is not the only advantage berinvesatsi in the property, because the most interesting fact from invesatsi in this property allows you to use other people money to start investing.
Most other investment products is influenced by many external factors. For example, prices at the stock exchange can be up and down quickly because even significant issues or gossip about politics, government policy, state security, economic conditions, such as bonds or the price down when the inflation figures and interest rates rise. Compared to the property even though the external factors are also affected, but the changes are not too fast, for example, the price of a house can not be changed once a day but only in the annual need.
Benefits of Investment in Property
With the property to invest, you have the opportunity to get the return investments. If you see Donald Trump's property, he is rich from the business property. The Bank also has a property, if we look at building high-rise headquarters of a magnificent, not to mention the tens of the number of branches
Many ways to invest to property. You can get started with buying a house to live, shop, build a house rented, commercial building or other vacant land. Of all these options, buy and sell houses rented better selected for the new start will invest in property, then a little bit to save the results of the rent to invested back .. If you see a lot of people interested to make a rented house, because with a employer allows you to have the property that you can control yourself, then sell them later. The good news you do not need much money to start your investment in property.
It's important to understand why a property is often the primary choice for developing wealth, why not because the property is not at risk. Such as investment in other property also have constraints such as the tenant is late paying the rent house, moving without notifying, which damaged the building, any difficulties can occur. Basically if you are busy with the affairs of this kind, the investment in the property for you.
Why the Real Estate
There are still many benefits of investment in the property which makes it very interesting compare the investment in others.
1. Cash Flow,
Cash flow is money that you receive on a regular basis on the money you tanamkan in an investment. such as interest rate and savings deposit is cash flow as income to provide for you. In property, the rent can be an income or cash flow for you. The more buildings that you can rent then the larger the cash flow you.
2. The value of your home ownership is increasing.
Value your rights or ownership of investment property that is financed from the concept of using the money before someone else will increase, far beyond your debt or obligation. Rights of ownership in an investment someone is known by the term equity. For example, if the purchase of your property investment of Rp 100 million, financed by the bank Rp 70 million, the remaining Rp 30 million of the money of your own. So your rights of ownership to the investment of Rp 100 million before amounted to Rp 30 million or 30% of it. Rights of ownership will increase in value due to an installment payment of the debt obligations. In addition, your rights of ownership also increases the value of property increases. Your property value will increase due to inflation makes the price of goods and services, including property to increase. Inflation is due not only increase the value of the property but you also have the opportunity to increase cash flow or income to the way you regularly raise money to rent a house in line with the inflation line. Increase the value of this property can even increase your borrowing power. Bank usually be happy to provide additional loans based on the price increase or property's collateral. You can use this money to pay off old debt balance, and the remaining money from the loans come in your bag. Then for a new installment loan adapted with rent income.
3. Opportunity to build a larger building again, after you successfully pay off debt, you will have more money to be allocated, for example, to create a property that already have become greater. Many investment properties starting from a small building, but because of the income from the rent that can be covered monthly debt repayments, then the property to create a larger building to be very possible
