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9 Reasons Why You Should Choose Property Investment
Although there are many options for investing, property investment is one of the favorites. There are at least 9 reasons why we should invest in property and not other types of investments:
1. The power of "Leverage"
To invest in our properties have the option to not use 100% of our money, but by using other people's money (OPM). One of the most common source is the money the bank loans. Depending on the country where we are, we usually can get a loan from banks ranging from 70% to 95%. In this case we only need to spend down payment of 5% to 30% of property price. This also means that leverage is approximately 3.3 to 20 times.
2. Relatively low risk
In general, investment in property is not like investing in the stock market where prices in one day can go down and up quite significantly. Only in certain situations where the economy was bad, property investments may be affected slightly. When compared with other investment types, such as opening a business, saving money on deposit or invested in stocks, property investment has a lower risk than those investments. If we look at the risk compared with income potential, the property has a relatively low risk with good potential income from rents and capital gains.
3. Two sources of income: rental and capital gains
Property investment offers a combination of rental income and capital gains. Investing in property is not only going to give us a positive cash flow but also the potential capital gains depends on property price increment
4. Full control to increase the value of property
If you have a property, you have full control of how you will increase the value of the property. There are many ways that can be done to increase the value of property, ranging from very simple things like painting the property. Other ways are to buy a few accessories or cosmetics, and renovations. These activities are very important especially when we want to rent or sell property. Some people do small renovations to increase the value of the property so that owners can sell at prices much higher.
5. Safe and sure investment in the long term
Property prices usually will not fluctuate so much. In general, it may take some time for property prices change over time. This is different from the stock market for example where prices can change dramatically in the evening.
6. Protection against inflation
Unlike a savings or deposits where interest is given is usually much lower than the rate of inflation, property prices usually follow at least the inflation rate. In this case, investing in property is still a better option to protect them from inflation.
7. A good vehicle to achieve financial freedom
Using rental income to generate positive cash flow, it is possible to achieve financial independence after a few years depending on the level of success of each person in the property investment. For example, if a person has income of $3,000 per month, that person can be financially free by making cash $3,000 per month with 5 properties with each property generate positive cash flow of $600 per property per month. Consider it a small house or row house, $600 rent would be very reasonable and quite conservative in this regard.
8. Can reduce the tax burden
Founded the company and buy property using the name of the company can save taxes. Rental property can be considered as income taxes and usually will apply only after deduction of all expenses charged. Buying property on behalf of the company will be more profitable than buying on behalf of individuals.
9. Become rich through property
Property investment can bring people to become truly wealthy. The key to wealth in property is through capital gains. For example, someone is investing in an apartment for $500K price with a down payment of $50K. Monthly rent of the property sufficient to pay the bank monthly installments, so automatically, financed by a bank installment monthly rent. After 20 years, the property has been paid in full and the price has been appreciated for example, to $1M (this is conservative, because the property prices in general will increase triple or even quadruple in 20 years). In this case the net profit from investment ($1 M - $50K) = $950K. If this person has 3 apartments and a total net profit would be almost $3M in 20 years. This guy really has become a millionaire with property investment.
Sebastianus W is an individual property investor. I have interest in property investment mainly in Asia Pacific countries such as Singapore, Malaysia, Philippine, Thailand and Indonesia. Beside property investment, I have passion and interest in other investment and internet marketing as well.
Article Source:
http://EzineArticles.com/?expert=Sebastianus_W
Philippines Real Estate The real estate business in the Philippines has recently been gaining popularity with several real estate companies developing their own sites in several parts of the country, including the non-metropolitan areas. Prices of real estate properties are relatively low when compared to those located in the United States. This makes investments in the Philippines attractive because their values are expected to appreciate in years to come. People who want to make an investment in the country or make profits by selling a real estate property can manually contact real estate brokers for the packages they offer. However, the easiest and most practical way to locate brokers or agents is by searching for them in the Internet. There are already several online real estate marketers available in the Philippines. Online real estate Philippine marketers promote their sites that include real estate listings and brokerages to international search engines. This makes their coverage wider and as such, heightens the possibility of getting closed deals quickly. If a person plans to sell real estate property located in the Philippines, online real estate marketers can act as their brokers. They will be the ones to look for potential buyers and explain to them the initial policies and terms of the offer. The investor can also use their site to promote additional real estate items they want to sell. For people who want to buy real estate property in the Philippines, online marketers also provide real estate listings that come from brokers in several parts of the country. Because it may be very difficulty to scan through the available properties for sale, some marketers have developed a system to filter out the choices. A leading marketer has set up a buyer's wizard that helps buyers narrow down the choices by their budget, preferred location and size. Once a selection has been made, the buyers submit the online form. The broker of the selected property will be contacted by the online marketer for a detailed discussion of the real estate package. With the online marketing trend in place, real estate in the Philippines can be expected to register more profits in the coming years. Philippines provides detailed information on Philippines, Philippines Tours, Language In The Philippines, Philippines Real Estate and more. Philippines is affiliated with Hong Kong Travel. Article Source:
http://EzineArticles.com/?expert=Richard_Romando
Is Philippines Property Investment the Best in the World Today? So where in the world is the best place to invest in a holiday and or investment property today? Some people say that it is the magnificent Philippines islands. Being an archipelago, the Philippine islands have a lot to offer in terms of natural resources. Its 7,100 islands boast numerous white and black sand beaches, making it eminently attractive to vacationers and tourists. The fantastic marine biodiversity affords abundant species of flora and fauna and a range of tropical wildlife. The Philippines is widely recognised as "the Pearl of the Orient Seas" and is situated 750 miles off main land Asia where many of the main islands have beautiful weather, pristine beaches and frills of modern living. The Philippines is not only the "Pearl of the Orient Seas" in terms of a popular global tourism destination but this archipelago has also emerged as a serious holiday home and investment location within Asia attracting many investors from America , Asia, Europe and the Middle East who are investing in Philippines property and property values have been steadily increasing year on year. "The Philippine real estate market has experienced a nominal year-on-year growth of 10 per cent for the last five years, despite recent events affecting the global property market" said. Tuano, who is also the chairman of the Philippine Business Council, Abu Dhabi, spoke to Khaleej Times ahead of next weekend's Philippine Property Show, which is being held for the first time in Abu Dhabi. Philippine Real Estate Market Buoyant Despite Global Crisis
One of the fasting moving emerging destinations in the Philippines is Palawan which has the "best beaches overall in Asia" according to Conde Nast Traveller and National Geographic Banyan Tree the well known a high end luxury resort company have committed over $70m on two islands in Palawan, meaning the region will gain further exposure and interest from visitors and property investors alike. One very notable new beyond eco resort development in Palawan is Cacao Pearl.
Award Winning
The private Island lifestyle offers something totally unique that's impossible to replicate and unaffordable to most. A completely unique experience, nothing quite compares with the feeling of being somewhere tropical with just a select number of fortunate people, all enjoying an exclusive lifetime experience. It is this forward thinking and way of life of the tropical island experiences that is attracting a growing number of people and property investors to the Philippines and in our opinion, if you are looking for a tropical climate, adventure and luxury as well as excellent financial returns in terms of rental income and capital growth then yes, the Philippines is the best place to buy property on the planet today. Luke has been working in the overseas property investment market for a number of years and can see the massive potential which Philippines property and especially Cacao Pearl resort offers lifestyle investors. Article Source:
http://EzineArticles.com/?expert=Luke_J_Fitzsimmons
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