If you are new to property investment and would like to understand why at all should you invest in property, here are those main reasons: Property Appreciation
Appreciation goes hand in hand with property investment. It refers to the increase in value of the actual property over time. Appreciation can be a handy strategy when demand for houses in certain areas rises and if there is a very low supply meaning the value of the property may rise.
Security It is well understood that compared to stock trading there is something that is tangible to touch and see. In the event of risk or something going wrong within the investment, you have an asset that can still be sold to take out your money.
Year On Year Increase
Owning a property is a “High Value” tangible asset that can appreciate over time.
Buying multiple properties and building a portfolio sets you up with multiple assets which are all increasing in value over time.
Flexible Strategies
Property can have different use cases including letting to families, renting individual rooms, commercial use, serviced accommodation and others. This gives great flexibility to define a strategy that suits your interests and would like to become an expert at over time.
Leverage
Leveraging in property works by using existing equity from another property to buy or invest in a new property. This method can be repeated over and over when equity is rising on each of your properties.
Stability
If you are looking for a way to earn another form of income, property investment will do just that. It provides an opportunity for stability when it comes to earning monthly cash flow.
Predictable Income
Unlike other kinds of investments, there is an element of being able to predict cash flow each month/year easily.
Inflation
House prices inflation can happen either by a change in the demand and supply equation or indirectly by an increase in interest rates on mortgages.
If demand for houses is high or there is a short supply, properties tend to be costed higher than normal.
Generational Wealth
Building a portfolio of properties can act as a reliable wealth that could be passed on to your future generations with applicable taxes.
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