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02/08/2010

Property Investment Concept

Investment involves basically two things, namely "issue at this time to expect to benefit in the future" and "out with certainty for an uncertain benefit." Property or real estate investment, as according to the above definition, simply means issuing or investing in assets that shaped the land and / or building on it. Forms of investment other than the property is: stocks, bonds, options, deposits, gold, dollars and other. Here, typically people invest because motivated by hope of gain is so high. At least six profit in invest property, namely:

1. Appreciation of the value added (because of its limited and do not move / immobility).
2. The added value of development (such as commercial buildings built or agricultural areas.
3. The existence of income from operating activities (rental).
4. Is good collateral.
5. Purchasing power protection against inflation.
6. Is a pride for the owner or user.

In addition to the above advantages, investment in this field also in terms of potential losses. There are at least six disadvantages, such as:

1. Destroyed if there is an earthquake or disaster.
2. Illiquid and the presence of time constraints.
3. Management and maintenance expenses.
4. Depreciation / depreciation of buildings.
5. Government control, such as tax regulations and others.
6. Complexity of legal and licensing.

In the case of property investing, in general, people have two different purposes. The first objective, investments are doing short term (short-term investment), in which he aims to invest for resale, such as purchasing land, houses, shop houses (shop) and others then resold to another party.

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