Why Invest in Property
Property investment is one of the most satisfying investments one can ever make. One reason is that it can help bring stability to some aspects of the investor’s life. Second, its potential gains could be so tremendous that a well-run property investment business could help get through any financial uncertainty an investor could encounter.
Advantages of Investing in Property
Property investing is one of the UK’s best-performing types of investment, and not without basis. Here are the reasons why more and more investors are choosing it over other traditional forms of investment.
• Property investing is considered safer than the stock market. Every investor knows that the stock market offers high returns. However, it is also common knowledge that it can be volatile and, therefore, financially dangerous. The risk is doubled for novice investors, who are not totally aware of the numerous hidden factors that have a negative influence on a financial investment. The risk becomes more pronounced when stock markets under-perform. This dicey state of affairs is making investors look to safer investments, like property investing, which is a far better alternative to the stock market.
• Only through property investments can an investor purchase his own property and pay for it without shelling more money than usual. This is because it’s only in this type of investment that an investor is allowed to buy property with other people’s money (financing through the bank) and pay it back with other people’s money (rental income from tenants).
• The fact that a property investor buys for investment reasons allows him to detach himself from the purchase and see the property simply as an investment medium. This means that the re-assignable contract option may be utilized and sold at a higher profit, prior to completion while bearing no redemption fee. On the other hand, a buy to let situation can produce a dependable rental income, thereby, allowing the incorporation of a considerable capital appreciation.
• A property investor can release equity against this type of investment. While there is no rule that declares properties will increase annually, it is widely recognized that the value of a well-preserved property in a reasonable location will appreciate.
Factors to Consider When Buying Property for Investment
• Capital Returns With all the advantages offered by property investing, an investor should also consider some aspects that will affect his investment strategy. One is capital returns. These differ according to the market where the investment is made. However, when a property is in a well-chosen location, it can provide superior returns than any form of investment.
• Capital Growth Projections Capital growth projection is another essential factor to analyze. A property tycoon knows that for him to build wealth through property investing, he has to invest in a location where the capital growth is expected to rise in value, thereby allowing him to purchase more properties and build up a portfolio.
The benefits of property investing are such that investors may want to go ahead and dive right into the investing pool. However, a property investor would do well to bear in mind to seek the advice of a professional property investor before committing significant funds to the investment. Newbies, are prone to making moves that may not be right for them. No matter how profitable property investing may be, it always helps to have professional advice to guide investors on the right path towards becoming a property tycoon.
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - http://www.Property-System.com