Why You Should Choose Property Investment

6

Although you may have many options for investment, estate investment has many advantages than many others. Several reasons make it necessary to invest in property that all other types of investment. One of the reasons is the power of leverage. You can choose when you are investing in property, not to use all your money in the investment. You have the option of using other people’s money to invest in property. One perfect example is the bank loans. Some banks can finance up to 75 percent of the cost of the building.  The other reason is that the investment has the relatively small risk. Investing in property is not the same as investing in the stock exchange. In most cases, the property investment is not affected by the changes in the economy unless the situation is very severe.  When you compare with the rest of investments, capital investment ranks lower regarding risk.

UK property investment gives you two sources of income. You gain from rental income and capital gain. Other than giving you cash flow regarding rent, it will give you capital gains depending on the property price increment. At the same time, you have full control of the increase in the value of the building. Different methods can be used to enhance the value of the building. Some simple ways include painting the house, buying of few accessories and renovating. These are significant activities especially if you want to sell the property or to sell. By doing some little renovations, you can increase the value of your property.

The other reason why investing in property is better than many other businesses is that; it is a very secure long term investment. Property prices do not fluctuate so much.  The prices are not like those of the stock market where prices can change overnight. Again you are protected against inflation. Savings or deposits give interests lower than the rate of inflation but not the same with property. With property prices follow the rate of inflation. Buy to let investment grow!

That means even with inflation; you will be cushioned against any losses. Again, investing in property is a right vehicle to achieve financial freedom. Using rental income you can generate positive cash flow making it possible to reach financial independence in few years.  It is also another way of reducing the tax burden. Rental property can be treated as income taxes and will apply only after deductions of all the expenses are charged. You will benefit more when you buy the property for the business other than for an individual. For more information you may also check http://dictionary.reference.com/browse/real+estate.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s