People are thinking that they should think first thoroughly, weighing all the circumstances before buying shares of real estate companies like DMCI and Megaworld. They always think that such decision involves a high financial cost and a lot of hard work for them, and deep technical knowledge. These are true of course. Although this is true, there are countless reasons why you should invest in real estate. To help you decide, here are some of the advantages why you should invest in real estate.
The main reason people to choose the real estate market is that, real estate is very much profitable and safer when compared to other kinds of investments like mutual funds, companies into the business of food and beverages, manpower and banking. You should have noticed one major thing in real estate investment, even though there are some ups and downs in the market, the real estate is always growing and rising, making your money in stock market having a solid ground on.
Real property investments are one of the safest forms of investment in terms of capital security. It is durable and has long economic life. While the buildings may be destroyed by fire, the land on which it stands is indestructible and continues to appreciate in value over time. Because of the property durability, this is an added security to investors that the company will not suffer bankruptcy.
Real Estate Philippines has two ways of growing. First if you can buy a property in the predictable next hotspot of real estate industry. Buying the property in a lower value and when the development of the new location comes, you can either develop it and sell them at a higher price or sell the property to interested companies at a higher price. Either way, you will surely profit millions. Second is buying a property that needs repair. Repairing it and adding some minor improvements, then selling it at a higher price. Either the first or the second way, the value of the property increases and your money also increases. These only shows that investing in real estate does not require much technical thinking, common sense sometimes will do.
Investing in stock market gives you the perks of not paying real property taxes, transfer taxes and capital gains tax than engaging into the business of actual buy and sell of real properties. Since stocks are not yet tangibles, although it was invested into real estate business, you’re not liable to pay property taxes.
These are the main advantages of real estate investing. Money comes although you are not in the actual field of real estate developments. Through proper planning and strategy, your real estate investment will grow and grow. Contrary to the belief that real estate development is now at saturation point, well, look at the stock market anyway.