With Property Investment You can Retire Young And Live Off Your Profits.
In the fast-paced, exemplary world today, money matters more than most
other things. This is the era of LPG (Liberalization, Privatization, and
Globalization.) People are interested in
exponential growth of money rather than slow growth. So, 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.
Investment properties are a hot option for that kind of a plan. Investmentproperty 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.
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). If you own a property, you can release equity against that property.
Although there is no law 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.
Here are some points which are sure to make you flabbergasted about the
profits of property investment.
50% of individuals mentioned on The Times Rich List made their money
through investing in Property. A property worth just €4000 30 years ago would be today worth around
€225,000
Equities or Stocks can be volatile, as with the .com crash, whereas ay property is historically stable.
It is well documented that on average the value of a property doubles
every 7 years.
Property investments provide equity growth and they maintain good cash
flow and not to mention, the capital appreciation is higher than any other type
of investment. According to figures from FPD Savills Research, the total net
return including capital appreciation on a prime central London property was
18.6% last year. In the UK, the total net return was 16.3% and in Spain it was
even a stronger performance during last year.
The benefit of investing in a property is that you can remove the
emotion from the purchase and look at the property as an investment vehicle.
This opens a lot of options for you. You can utilize your re-assignable
contract option and sell at a substantial profit prior to completion, carrying
no redemption penalty or you can take the "buy to let" situation and
generate a good reliable rental income, including substantial capital
appreciation.
BY EDSON CANO
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