The Advantages of Having Property as an Investment Asset

Property investment is a form of capital that is similar to other investments with the process of buying and selling assets as well as handling assets to provide income or profits. The difference between property investment and other types of investment lies in the type of assets managed. If the money market investment assets are in the form of currency, the stock investment assets are business securities that can be traded, then the investment assets in the property sector are housing bonds. Property assets here refer to a plot of land and everything on that ground starting from buildings, houses, trees, paths, and other resources. If you are renting or reselling that property asset, that is what you call property investment. If you want to do long-term investment, then property becomes the solution for you. Observe these 4 advantages in property investment!

1. The price of property increases yearly

If we look at the increasing number of the population, the demand for living spaces increases as well. If the stock is limited, but the demand keeps increasing. The price of houses and land will automatically increase, while properties are listed as a basic need that has to be supplied. For example, today you buy a house for 700 million rupiahs. In 5 years, the price can rise to 1 billion rupiahs, especially if your property is located strategically, it will sell better.

2. Memiliki capital gain yang cukup besar

Ketika ingin melakukan investasi maka kita cenderung akan memikirkan banyak hal bukan? Mulai dari modal yang digunakan, kemudian kita juga akan memikirkan berulang kali apakah jika kita mengikuti investasi tersebut akan merasa rugi atau tidak. Namun ketika kamu melakukan investasi properti, maka bisa sangat menguntungkan karena ia memiliki capital gain yang besar. Misalnya saja hari ini kamu membeli rumah dengan harga 750 juta, 5 tahun kemudian kamu menjual rumah itu dan bisa mendapatkan harga 1 milyar. Hal itu bisa terjadi karena mungkin saja lokasi rumah yang strategis atau faktor lain. Artinya kamu mendapatkan capital gain sekitar 250 juta dan itu bukanlah jumlah yang sedikit.

2. Having a significant capital gain

When considering an investment, we tend to think about many things, right? Starting from the capital used, then we will also think repeatedly whether we will incur a loss or not if we follow through with the investment. However, when you invest in property, it can be very profitable because it has a large capital gain. For example, let’s say today you buy a house for 750 million, and 5 years later you sell it and can get a price of 1 billion. This can happen because the location of the house may be strategic or other factors. It means you get a capital gain of about 250 million, and that is not a small amount.

3. Can be a Long-term Investment
   
   

There are two types of investments you can make: long-term investments and short-term investments. Long-term investments are typically chosen to be assets in the future. If you are looking for a long-term investment, then you can focus on property investment. This type of investment is considered one of the long-term investments because its value tends to increase every year. By delving into property investment, you are essentially providing a source of passive income for investors.

4. Property Inheritance Can Be Used as Collateral
   
   

Collateral refers to an inheritance or item entrusted by a borrower to a lender as security. In Indonesia, there are many inheritances such as houses, apartments, land, shops, and others. Property inheritance can be used as collateral for a loan if you ever need one. Collateral in the form of property inheritance can be utilized to purchase another property unit, thus allowing the cycle of profit to continue.