With the turbulence of the stock market, people are interested in a solid safer growth of money rather than slow growth or high risk fast growth. Instead of saving all your income and using it for your post-retirement life, you can invest your income in a judicious manner to multiply it and earn much more from it. Buying investment properties is a hot option for that kind of a plan. Investment property is a property that is not occupied by the owner, usually purchased specifically to generate profit through rental income or capital gains. There are lots of convincing reasons for you to realize the benefits of investment properties.
Buying a property investment is where you make a small investment into a property, typically one still being built, which is known as an off plan property and then go on to rent it out to get good dividends, and then once raised in price, you can sell it to gain a profit or to purchase more property.
No investment today offers the stability and simplicity along with the excellent returns offered by investing in property. The stock market can offer high returns, but it is a very volatile and unsteady place. This is especially true for non-professionals and there are so many external factors that can effect your financial investment. Not to mention the fact that the major stock markets have generally been underperforming and property investment stands head and shoulders above other forms of investments. There are a lot of options when it comes to investing in property, as you can choose the option of investing in commercial property such as industrial/offices, hotels, apartments, retail shops and the list goes on. It can be a residential property; you can buy it and sell it at a higher rate for capital gain or rent it for regular dividends.
Property is now the wise investor’s weapon of choice. No other investment allows you to purchase with other people's money (Equity partners) and then pay this back with other people's money (the rental income from tenants), and hand off the day to day operations to a qualified property management company. Also, if you own a property, you can release equity against that property. Although there is no guarantee that states that your property will increase in value year on year, it is accepted that a well maintained property in a reasonable area will appreciate in value, because as rents rise, so does the value of that property to an investor who may want to purchase it.
Here are some points which are sure to make you flabbergasted about the profits of investment properties:
50% of individuals mentioned on The Times Rich List made their money through investing in Property.
A property worth just $15,000 just 30 years ago would be today worth around $300,000.
Equities or Stocks can be volatile, as with the .com crash, whereas a property is historically stable.
It is well documented that on average the value of a property doubles every 7 years.
As a Main Line REALTOR, I have had the opportunity of showing clients the benefit of investing in a property. I have taught them the value of working with a property management company and that it is imperative that you remove the emotion from the purchase and look at the property as an investment vehicle. The common misconception is that property owners are landlords, and that is simply not the case for many educated investors who put together a solid management team.