Property Investment, The Prima Donna of Investment
March 27, 2020
As time goes by, technology evolves to be more sophisticated and investment options increasingly vary. Thanks to the vast
development of technology, investments have never been this easy. Some investments can be made through mobile phones. Of course, we have to be careful in choosing investments. Everyone is aiming investment with the highest return.
Property investment offers promising and stable returns. Let’s look at five points that make property investment is an excellent choice for you.
1. You are in charge of everything
You decide which property you want to invest in. If in the future you will rent out the property, you decide who you want the property to be rented to, whether to office workers, students, or families. You also decide on the suitable rental price for your property.
2. A quick and high profit
It is true that investing in property requires more money than other types of investments like stocks, mutual funds, or gold. However, investing in property will yield a quick and high profit compared to other investments. Through property investment, you can also get additional fixed monthly income by renting out the property.
3. The value keeps on increasing
It seems like a common knowledge that property prices always go up on a steady pace, especially if your property is strategically located or a project developed by a well-known property developer, surely it will be an added value. According to the Property Market Outlook 2020 published by rumah.com, residential property prices are predicted to increase by 6-9% in 2020. Property prices are never stagnant, always on the rise.
Let’s look on an example, suppose you buy a property for 1,000,000,000 this year. The projected increase in property price is 7% per year, then the projected value of your property in 5 years are illustrated in the table below:
Within 5 years, the price of your property has risen by more than 40%. It can be concluded that property investment is a promising and very profitable investment.
4. High stability, low volatility
Continuing from the previous point, property investment has high stability and good projections. The level of volatility in property investment is also low, not as high as stocks or money market. Although sometimes the high returns from stocks are tempting, the high volatility makes people feel reluctant and avoid the possibility of damaging losses in the future. The combination of high stability and prices that always increasing every year makes investing in property in demand.
5. Independent, won’t be affected by the inflation rate
Given the large amount of money that must be prepared for property investment, not everyone can pay in full, this is where mortgage option came in. Through mortgages, you don’t need to worry because the interest rate is pre-determined, not following the inflation rate. Thus, property investment can be categorized as an independent and stable investment.
6. Can be used as a leverage
If sometime in the future you need to loan a large sum of money for your business or other purposes, your property can be used as collateral or leverage. Financial institutions love collateral in the form of property because a property has a physical form, legitimate legal documents, and a high value.
Although you will need an extra fund to invest in property, over the years property investment has proven itself as a promising and highly profitable investment option. Agung Podomoro Group as the largest property developer in Indonesia presents various types of property for various segments, so you can choose which property is suitable for you to invest in.