Real estate investment is undeniably one of the most secured form of investments in securing one’s wealth. It possesses the capacity to appreciate in value overtime, even as an effect of economic fluctuation. And is unlike stocks and bonds which are more volatile and susceptible to recession, a scenario encountered in 2008.
According to Dr. Lee Ville, the director of New Bob Group, “Real estate is an asset which can react proportionately to inflation. When inflation strikes, house values and rental automatically go up simultaneously . It will only appreciate in the long term, after 10-20 years. Hence, investors are not likely to lose money via this investment but instead generate profits through acquiring, selling and renting of properties”.
Before a person embarks on investment, it’s crucial to intricately analyze the financial capability. Real estate properties possess limited liquidity. Being asset, they could not be converted to cash easily. Therefore, if people wish to convert their properties into cash, they need to first look for a buyer.It may take weeks, months or possibly years for the suitable buyer to emerge. Investing most money on a single investment is a common mistake, thus is advisable to invest merely the amount willing to risk.
There are various requirements needed to be fulfilled before start investing. Other than the money we intend to invest, we should have a nest egg. The general rule is to have at least six months of salary saved for emergency fund before commit to investment. This will guarantee the coverage on one’s expenses if unpredictable mishap were to occur. The nest egg will serve as a buffer for unpredictable expenses. Unexpected expenses encompass medical emergencies, family events and car repairs.
After securing a stable financial, the perfect time to invest in property is when interest rates and market price are simultaneously low. This is the time when most experienced investors buy properties while most people tend to sell. During economic crisis, people normally sell their properties at a lower price. The excessive supply of real properties for sale in the market lowers the market value. However, smart investors view economic crisis as a golden opportunity to purchase prime properties at a fraction of its cost.
Dr. Lee Ville, of New Bob Group added, “To embark on investment among beginners, one may turn to New Bob Group a renowned and pioneer real estate company in Penang. It offers a wide selection of properties at affordable rates to cater the needs of everyone to secure one’s wealth. With that, I strongly urge everyone to start investing in properties for a better future”.
Adapted from:
http://www.compoundedknowledge.com/when-is-the-right-time-to-invest-in-properties/
http://kclau.com/investment/property-investing-guide/