There is always something appealing and comforting about an investment that you see, touch and know is real. Property Investment is one of the few investments that meets this. Through Property Tutors and Sean Wood Mentoring you can learn more about Property Investment.
1.Less Volatility – unlike stocks and shares property is not as volatile, price does not react sharply to market changes and other developments. Its value will not crash like many stocks.
2. No Fluctuating Rates – Fluctuating rates like you may see with exchange rates in forex markets are not seen in property markets. Usually prices make a gradual steady increase or even a marginal decline.
3. Generates Capital Growth – Property prices appreciate over time and the capital invested grows at a steady pace.
4. Serves As An Income Supplement – Property can become a source of additional income if used as a rental, or can save rental payments if you opt to live in the property. Though initially, the rent may be used for mortgage payments or loans taken to purchase the property, once the debts have been cleared, the rent is additional income to take care of some expenses.
5. Better Than Fixed Deposits & Bonds – These also are subject to changing interest rates and their long term returns are unpredictable.
6. Reasonable Returns – Financial analysts widely agree that the value of property doubles every seven to ten years. If an investor is not tempted into being greedy, this is a fair rate of return. Returns can also be earned by buying low and selling high, which just requires patience while the property value escalates.
7. Helps to raise loans for emergencies – Property is also the most acceptable form of collateral against which any bank or financial institution will be willing to give a loan whenever there is an urgent need to raise funds.
8. Property provides tax benefits – Owners of property enjoy tax benefits that convert into savings, while still meeting their obligations.
Property is an investment that can be seen and touched and not just a paper asset. For many people it is be the first big investment made and subsequent additions to the property portfolio can be done when surplus funds are available.
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