Article by Icel Dy.
Like everyone else, you may have had a few financial decisions that were not something you want to do again — impulsive purchases, failed investments, and the list goes on. But here you are, trying to make better financial decisions today – and one option you are looking at is investing in property.
Whether you are finally ready to make your first investment or are looking into diversifying your investment portfolio, property investments could be a good choice for you. Here are 5 reasons why bricks-and-mortar are still one of the most robust long-term investments you could have.
5 Reasons Why You Might Want to Look into Property Investment
5. It is flexible.
Once you’ve bought the property, you have complete control over it. Whether you want to use it as a place for your retirement, want to have it rented, or want to sell it for a higher price sooner or later; the decision is in your full control.
As the owner of the property, you can directly influence the asset worth by doing improvements or renovations, for instance. You can also directly determine the cash flow by raising the rent. This kind of control is something that is impossible when investing in the stock market.
4. It will be in greater demand in the coming years.
As reported by The Jakarta Post, the ASEAN community has the potential to become the fourth largest economy in the world by 2030. That means there will be an increase in cross-border developments of labor and capital, as well as foreign investments. Hence, there will be a greater demand for property. With this being realized, there is no better time to invest in property than now.
3. It can supersize and diversify your portfolio.
One way to truly diversify your investment portfolio is to invest in property. Boosting your portfolio through having real estate can provide higher returns, depending on how you want to control the property. You can always develop, renovate, or subdivide a property you have for an increase in returns. It’s all about maximizing its potential.
2. It brings you passive income.
Property investments are perfect for securing your retirement as it can bring you a passive monthly income. Rental properties are always on demand and have the potential to be of greater demand in the future, so you won’t ever worry about getting people to avail of short-term and long-term rentals. Also, income from rental properties normally increase in value with inflation, so you can increase your property’s value as you grow older.
Frequent travelers who choose to invest in property also benefit from passive income. You can travel all you want without having to worry that you need to actively work for your income flow. With passive income from rentals, cash flow is sure and secure.
1. It’s easy to get started.
The decision of investing in property comes with good news: It is so easy to get started. Other investment options like the stock market can be tedious and tricky. You have to understand the world of trading. You need a specialist to assist you with the ins and outs of the share market. With property investments, you can just go into it directly — you can go online and see properties you might be interested in or go to real estate consultants to see the available properties you might want to invest in.
With property investment giving you full control over your assets that will be of greater demand in the coming years, a chance to supersize and diversify your portfolio, and an income where you don’t have to actively work for; what’s stopping you from making your best decision yet?
ICEL DY is the Vice President of Spectrum Investments, a property portfolio management company. Her background in real estate stemmed from 10 years ago as a property specialist for Ayala Land. She used to live in a house, but has recently been fascinated about small spaces and now live in a tiny home. For questions, you may reach her at [email protected]gmail.com, or get property updates from www.iceldy.com