Investment has become an important part of everyone’s life. There are also various types of investment, such as gold investment, mutual funds, bonds, deposits, foreign exchange, and property.
There are several reasons why many people want to invest in property. Anything? Please see the benefits of property investment below.
1. Prices are going up
An increase in the number of residents in an area makes the regional government must be able to provide a place to live for its residents. So, if the population in the area is increasing, the need for property will also automatically increase.
However, the increasing demand for these properties over time will not match the area that cannot be increased. Therefore, in crowded areas, property prices will increase over time.
Not to mention the location, the more strategic the location or the easy access, the faster the price will soar compared to other locations.
2. Prices follow inflation
Inflation will occur if the government prints large amounts of money and the money supply will be much more than before. Usually, the government is very difficult to control inflation.
This is different from property investors. If inflation increases, they will also increase their property prices according to the inflation that occurs. So, owning a property investment is one of the right steps to protect yourself from inflation because the price will increase simultaneously.
3. Free cash flow
Apart from being a private residence, the advantage of having an investment in property is that it can be rented out. So, the owner can take advantage of the cash flow.
Property investment cash flow gains come from the annual cost of the house contract, or it could be monthly, depending on the agreement.
4. Value determined by owner
Another advantage is that the control of the value of the property is held entirely by the owner. For example, if you sell gold or foreign exchange, the value of the investment is usually governed by the movement of the stock price. While the property, the owner is free to control the rental price or selling price without anyone setting it.
5. Asset value can be increased
Investment in property is also more flexible. This means that the value of the asset can be increased according to the owner’s wishes by renovating your asset.