5 Benefits of Long-term Property Investment31 January 2020
Property investment, both land and buildings, can be a promising long-term investment choice. Property is one of the basic needs of every investor, while the property’s availability is increasingly limited. Therefore, no wonder that its value will tend to increase from time to time.
Besides getting capital gains or future price increases, another advantage of property investment is getting rental income by owning several rental homes or villas. This can be a source of income when entering your retirement age.
Property Prices will Increase in Every Year
It’s common knowledge that property investment has an advantage in value that continues to increase from time to time. These benefits can be obtained from rising property prices (capital gains) and rental prices (yields). Because the land area doesn’t increase while the shelter continues to grow every year. Moreover, if your property is close to the strategic location, such as the city center, campus, and other public facilities. This certainly tends to be a demand for every circle.
One of the Promising Investments for the Long Term
There are many choices for investing both short term and long term. A long-term investment is perfect to guarantee your needs and future. Property investment is one of the long-term investments. This can be seen from the development of property investment that continues to improve every year. Property investment always gives a big impact, which is providing passive income for investors. Passive income is obtained from rental costs within a certain period. So, in addition to getting active income from your profession property investment can also be an important asset in maintaining financial stability in the future.
Big Capital Gain
Hideaway Residence Bali's Bedroom
Having a residence as a long-term investment is a good investment value, with its value that will continue to increase from time to time. If you have a villa, it’s also important to explore the capital gain potential of the villa that you want to sell or rent. As long as you waiting for the rise in property prices, in that waiting period you can rent out your property so your cash flow is stable. For example, a villa property with a price of 1.5 billion, may have a rental price of around 10 million to 15 million per month. This is the example that your profits from assets are referred to be as revenue.
Property investment is also useful when you want to apply for a loan. You can use this investment as collateral when you apply for a loan that will be used to start other property investments. Banks that lend funds usually prefer property as collateral. This is because property becomes goods with clear physical, legal value and high value.
Some investments come without a physical form, such as investment in shares, bonds, or mutual funds. Some so many people don’t like investments that not visible. Therefore, many investors are more interested in investing in property, especially property with a big capital gain. If you are one of them, property investment is worth to try.
Are there still doubts for you to start investing in property? Some examples of the benefits above can help you to choose property as a profitable investment in the long term.
Hideaway Development helps you more easily in choosing properties for your future investment. We have available units for sale freehold in hideaway villas | uluwatu, bali and hideaway residence | ungasan, bali.
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