REASONS TO INVEST IN PROPERTY
More than a decade ago, most people chose to invest in property sector simply because the interest rates and land price were much lower back then. But since the digital era has started, the investment trend shifted to digital investment like unit-link and trading, and it allows people to start with a very affordable low rate. The eagerness to invest in property, however, has been on the rise again since home values are climbing up in most places. So if you’ve been thinking on this particular issue, then this article is definitely worth your time!
REMARKABLE CAPITAL GROWTH
They say property doubles in value every ten years. Plus, property is always in demand because people will always need to utilize spaces to live, work, or play. Housing is one of the basic human needs, and with population increase, it impacts directly toward property demand. Whether you’re buying for your personal use or lease it out, a property investment will eventually increase in value. Even when the market is declining (as it did after the Global Financial Crisis 2008) Indonesia's property market bounced back quickly.
You can yield rental profit, especially if you focus on areas with growing populations, or mature and well-developed area like Central Jakarta. It's a long-term investment, as stated above, that if you foresee the next 20 or 30 years period you will see its value increasing steadily.
TANGIBLE ASSET
Unlike your intangible investment in the form of stocks, shares and other forms of investment that you might be having right now, there is something comforting about having an asset that you can physically see and sense for its ambience and surroundings. You know where your property is and it's not going anywhere.
IT BRINGS OPPORTUNITY TO ADD VALUE
Over the time, value of your property will increase, but you can hurry this along with a savvy approach to renovation. You can buy an obsolete property which requires work doing, and increase its value once its renovated. Or, you may purchase other property at reduced price, do the 'facelift' and resell them for a higher price. Renovations can always improve the property value! Sometimes the renovations can be as simple as updating old features and furniture, or expanding the area.
YOU ARE FULLY IN CONTROL
If you are investing in the stock market, there are times when you might feel that your investment is actually in someone else's hands: the management and employees of the company you'd invested in. Fortunately, investing in property is a different story. Even though you partnered with a property management to do the job better, you're still the one in control of your asset.
REAL LEGACY FOR YOUR KIDS
The very last reason why you should invest in property is you can actually inherit it your kids or grandkids. A property portfolio allows you to do this. It provides shelter to families, and it will give your descendants an income that a wedge of life insurance money or a pile of stock certificates can't. But it doesn't mean you won't need a life insurance at all!