Real Estate Investing is one of the many types of investment instruments that Indonesians continue to have a great interest in. The reason is that property investment is considered more stable and safer and yields very significant returns in the long run. What are the other benefits?
Tend to be low risk
The first reason why property investment is so promising, especially in 2019, is low risk. Many say that if property investing involves high risk, it is not the case if you manage it well. The risk level of property investment is low because the movements are not very sensitive, as is found in equity investing.
Has added value
The second advantage of property investment, unlike other investments, is that it has a profitable added value. For example, if the property is located in a strategic location, prices will increase. If you own property in this strategic location, buyer or tenant price won’t be the only thing considering your property options.
If you choose property investment, the profits from your property investment will get you a financial income from the sale or rental of the property. Property investment can be in the form of houses, land, shops, apartments, boutique buildings, and many other types of property investment. The rental price or selling price of a property is determined by the market price.
Has the potential to increase investment
Due to its rare or limited nature, property prices, such as land and buildings, will certainly continue to increase relative to other property prices. Something rare will affect the economic value of the product itself. You compare it to financial investments such as stocks. The value of the share price will increase if the company’s performance is considered good. But if the company’s performance is poor, the value of the share price will decrease.
There is protection against inflation
The rate of increase in property prices each year is much higher than the inflation rate.
Long term investment
Compared to deposits, gold, or other investments, this property is sustainable. The property business has an average investment of 3 to 5 years. That is, after 3 to 5 years, the change in value is sufficient to generate a capital gain (the difference between the purchase price and the selling price).