investing September 07, 2017

Introduction

Investing is putting money into a business or a property where it will bring with it gains or profits or rather one can see the worth of putting the money there. It is a way of saving or preventing unnecessary use of money. Yes, I believe the property is still a safe way to invest in. investing in property gives one financial freedom. The property has the potential for solid capital and may even lead to increased value if you hold the property for medium to the longer period. Property is a good performing asset statistics has shown that a property that is located in the place near social amenities is likely to double its worth for a period of 7-12 years. Properties are known to provide rental income properties can be used in the acquisition of loans thus can help one when in dire need of money as it can be used as security. Investing in property is good as this will save one from misusing money or living an extravagant life (Nalebuff and Ayres, 40-80). This paper will try to explain why I totally agree with the statement that property is still a good asset to invest in fully.

How to acquire a property

It is good to do a proper feasibility research before one decides to invest in a property. It is always good to have a commercial outlook when purchasing a property. It should be situated in a place where it will grow and develop to gain value. The property should help one benefit from development and growth in the area it is situated. Selecting a property is a crucial process that largely depends on ones financial profile, preferences and the purpose or requirement of the property. The most common properties that people invest in include land, apartments, buildings, real estate among other assets. Financial assets are marketable securities or stock of a business. It is believed that if one invests in safe assets they can earn 3 percent annual return after inflation. The only possible way of being able to invest in assets is by cutting down ones' daily expenses and saves in assets. This would be painful and hard for it would involve doing without some of the luxuries that makes life more comfortable for purpose of investing in assets for the future. For assets to be beneficial to us in the future we have to hold them properly.

Benefits of investing in property

Saving money

Properties controls one on how to use the money. It is a good investment or it acts as a way of saving. Instead of saving all the money in the bank where it will gain little or no interest it is better to save by investing in safe properties that gain value after a period of time. In the past, people used to work spend money and after they retire they suffer as the little they had saved would get finished with no time. When you invest in properties during your working period, the properties will gain value and such that one will not suffer or become poor after retirement. Properties are assets that can gain value with time than we can expect. A safe property means investing in those assets that do not have liabilities or those that will be requiring servicing or other expenses.

Financial independence

Investing in properties makes one financially independent during the retirement period. Retirement time is a period of enjoying your rewards after many years of work and it can only be so if one invest in properties. The good thing in investing in property is that you may not repay it a 100 percent for the government and the tenant can repay on your behalf. Investing in property gives one freedom to create wealth, freedom to prepare for retirement, freedom to enjoy a good lifestyle. Investing in property is a way of saving and it can help one to pay a mortgage in future. It increases one wealth. Properties can act as security in acquiring loans (Nalebuff and Ayres, 60-80).

Reduced tax

Assets may reduce the total tax of your income. This is beneficial as the amount that one would be taxed can be used to invest in another asset. With current leverage strategy, it is important to invest in properties. Property leveraging means borrowing money to have much to start with in order to increase the possibility of earning a lot of profits. Buying a home is a long life exposure to business. Today people are making a lot of money in investing in real estates. This has become the investment of the day. People are practicing this in order to save for their retirement and also gain wealth. People have become exposed to real estate investments today. This has been made possible because of leveraging. It is also beneficial as one enjoy benefits like tax deductions on set up costs and interest on the loan.

Security

Traditionally owning a house or a home was seen as the biggest retirement asset and indeed it is. This is because a home is an asset that gives one freedom and a feeling of satisfaction like any other asset. A home can act as security in acquiring loans from banks to invest in other properties. It is good to invest in diversified assets to break the tradition of only investing in homes as the single asset. Diversification of assets is a form of security as even when one fails, you have other assets to look at. Investing in assets is still a good thing to do as it gives one confidence when you see what you have been working for. Physical assets bring morale to continue working and investing more. Properties that are well maintained enable one to acquire the huge amount of loans. This enables one to invest in other properties thus it leads to wealth. One property can lift one financially through loan (Graham, Benjamin and Dodd, 140-150).

Boast economy

Investing in properties is important to a country economy as it brings growth and development in the area it is situated. When you have many properties you may need to employ a person to manage them. In this investing in properties can lead to the creation of employment. This is of great importance in a country economy as it will enable many people to be financially independent. When one starts investing while still young he/she increases the retirement savings by fifty percent. This is important to the country economy as this would reduce the number of the dependent elderly which burden the economy of a country. This is to diversify investment across time which reduces the risks. This help the elderly to live a retirement life more comfortable and independently. According to Australian Bureau of statistics over 50% of people above 65 are dependent on well fare, pension, families and some continue working to meet their daily needs. This has largely been caused due to lack of investments in assets. Also according to the Bureau of statistics, 85% of Australians do not own an investment property and this clearly explains the situation with the elderly. They do not invest thus it leads to retirement poor and dependent for support. This shows clearly that it is still wise to invest in properties (Graham, Benjamin and Dodd, 140-150).

Leverage and mortgages

It is good to diversify across time and assets as in leverage strategy this ensures the risk taken in investing in properties is not put under one risk but across. This also gives one an exposure to property investment in life as you age. Today people are getting good returns by taking mortgages and investing in property as assets. They continue paying the mortgage while maintaining full ownership of the property. At the end, one has the property that is not depreciating but rather it has appreciated with time. Leverage and mortgage is a good way of attaining assets as it enabling even those with low incomes to own a property. This is a good form of debt as it helps one become wealthy. It is used to bring income by acquiring properties as assets (Nalebuff and Ayres, 40-60). Success in investing in the property is usually based on the market. The market pace might differ with time and the economy but it is clear that the value of a property doubles between 7-12 years thus the chances of getting losses when one invest in properties are very minimal. Investing in property is therefore a long-term investment that can allow someone to gain equity faster and expand property ownership faster (Nalebuff and Ayres, 78).

Conclusion

It is clear that investing in property is still the best thing to do. I totally believe with this as it seems more beneficial .investing in property enables one to save for the future. A property acts as a security and one can become wealthy through acquiring loans and investing diversely in properties. Properties enable one to enjoy financial freedom during retirement and one is financially stable to cater for expenses during retirement. This ensures a good life during retirement. Investing in properties is beneficial to a country economy as it creates wealth and people can get employment from this. Properties gain value with time and this brings with it great rewards. If properties are well maintained, the chances of getting losses from properties are very minimal. With all these benefits it is totally wise to invest in properties as they are safe assets.

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