As a financial expert, I strongly believe that the best investment you can make is investing in property. In this article, I will explain why it is considered as a safe game and why you should invest in property as much as you can.
Property is a tangible asset
Property is a real thing that has value. You can touch it, see it and even live in it! It’s always easier to think of a physical that has actual value than looking at your computer screen displaying a graph of numbers or reading the news about the stock market.
When you purchase a piece of property, you are actually purchasing something that has substance and value. This is especially true if you are considering to buy a house or land. You don’t need to possess special knowledge to know that the land has value and will continue to have value because land is limited on earth and there are only a finite number of LDA Approved Plots in Lucknow available.
The price of stocks fluctuates all the time and if you want to get some return from your stocks, you must sell them at the right time when the market price is high. With properties, no matter what happens in the market, people will still rent room or houses to live in because they need somewhere comfortable to stay.
The property rates are constantly rising
People are willing to buy properties at a higher rate as it appreciates with time. The market has huge opportunities for investors as people from all around the globe have started investing in real estate.
Rental income is huge
If you are buying a house for rent, then you will earn a good amount of rental income. You can gain monthly income which helps you to repay your EMI (if your property is on loan).
Real estate offers one of the best leverage options (up to 60%) for investing when compared to other asset classes such as stocks (2-5%) or commodities (0%). Therefore, you have greater potential for generating higher returns on your investments when leveraging on considerable borrowed funds.
Property is a tangible asset that can easily be sold at any time with minimal effort. And because property is always going up in value this makes it a very low risk investment. Also, if you rent out your property it is possible to get income from your property even if there is no capital growth at all on it!
Over time due to inflation, the value of money decreases while demand for housing increases making your property worth more just by sitting there! Property are seen as an inflation hedge that protects your wealth against price rises.
Investing in real estate gives you higher returns than any other form of investment. One of the main reasons behind this is that the property market has always remained stable even during inflationary times. If there is an increase in inflation rate in the economy, the prices of all commodities also increase accordingly. But when it comes to the real estate sector, prices remain stable. In fact, during inflationary times, investors usually prefer putting their money into the real estate sector because they know that their money will not fluctuate like it does in other sectors.