Property investment is an investment in the property which involves purchase of a property with the intension to either sell, lease it out to earn profit or simply for living. This investment can be both short term as well as long term venture. Generally, investments can be done in various range like, shares, debentures, mutual funds, gold, antiques, art, vehicles, property etc. but it involves risk, financing, guidance and also personal choices that influences the decision of investment.
However, there are some advantages associated with property investment.
- Doing investment in the property is less risky as compared to other investments like shares and gold that fluctuates with the fluctuation in the stock market and thus property investment provides asset security to its investors.
- Interest rates on the property financing are lower and can be easily available. Property financing can be spread over the years to ease the installments. Maximum financing can be done by involving banks in it.
- Investing in the property is easy as compared to stock market as not many people understand the principles of stock market where as in property investment most of the buyers understand the basic concepts of buying and selling.
- There is a very big advantage of investing in property as it provides financial leverage which means that one can borrow money against the purchased property and can obtain loan for another property.
- Property can used for personal as well as commercial purpose, one can add value to it by renovating it or redeveloping it.
- One can customize property according to the personal choices and requirements.
- Investment in property also helps to minimizing capital gains
Moreover, it can be used for commercial purpose if not used for living, like one can make holiday home or a guest house out of it or can even lease it, or rent it to earn income.