10 Reasons to Buy Property
What makes property investing special and why you should start.
Whether you’re a businessperson seeking out new ventures to invest in or a family person looking to lay down a foundation of security and stability, there are many reasons why getting your hands on property could prove to be a smart play.
Although buying a house might be viewed as an important milestone on the path to independence/adulthood, it can prove challenging, especially if you’re not aware of the risks involved or well-versed in the process.
That said, the pros greatly outweigh the cons if you ask us. Why should you invest in a house? or any property for that matter? Let's have a look and hopefully this can inspire you to start your journey.
1. The price of houses tends to rise over time
Moving in cycles, real estate goes up and down. Throughout the years, however, real estate has been appreciating consistently. For the past 20 years in the U.S, home prices have increased by 3% to 6% per year. The same appreciation applies to Malaysian properties as well. While there will be slowdowns and downturns, generally house prices increase bar a massive economic meltdown. Buying a property is generally a secure long-term investment.
2. Getting started is relatively easy
Funnily enough, there are actual cases of property buyers who did not initially intend to profit from property ending up making a fortune. They started off simply buying a house to live in. After seeing how the value increased and seeing how profitable investing in real estate is, they began investing more actively. You don’t need to be an expert to start investing in real estate and sometimes it’s just taking the first step that matters.
3. Selling above value
You can increase the value of your house immediately by giving the property a bit of a facelift or makeover/renovation. They downside is having the capital to do all the necessary work beforehand but once everything is nice and proper, you could walk away with a healthy profit. Seasoned investors usually give their properties a good makeover before flipping.
1. Bank loans
Unlike the stock exchange or forex market, banks will give loans to people who want to buy property. The same cannot be said if you are interested in investing on the stock exchange. For the most part, you go into it only with what you have but with properties, financing is there and for new properties, you might even get more discounts on the package.
2. In comparison to stocks and shares, it is easier to understand
There’s a lot of education and research involved in the stock market. The world of trading is a very complex and stressful one. Take the wrong step and you could be in for a crippling loss. In contrast, investing in property can be a much more pleasant journey. There are plenty of resources online to learn as well like propertyhunter.com.my and property investment is relatively straightforward for the most part.
3. It’s your house
One of the main reasons why so many people yearn to buy their own house is because of the pride of ownership. It can help bring a sense of stability and security to you and your family. It literally is security when you think about it. Paint the walls pink, tile the floor, put up any sort of permanent fixtures and adopt as many pets as you want (unless the management doesn’t allow it). Do as you please. You can’t do most of that in a rented house.
4. For the most part, pricing is negotiable
Shares can only be bought at the market price of the time. The opposite is true in the property market. Negotiation is involved in both buying and selling, where you can find deals on properties that are considerably lower than market price. Even primary properties are negotiable to a certain degree on things like discounts, rebates, freebies etc.
5. A flexible asset
You can either rent this property out for a consistent flow of income or you can live in it. Remember, the property is yours. If the tides of life somehow turn against you, you still have this house to move into. Once you’ve got your bearings back, you can move back out, or not. It really is up to you.
6. One of the most stable investments
In comparison to the volatility of forex or the share market, property can be considered one of the more stable investments. The processes and efforts involved in purchasing property make it quite immune to market volatility. It is very unlikely that the property market will crash overnight.
7. Benefiting from a developing area
Maybe, when you bought the house/property, the area in which it was situated was only beginning to show signs of further development. As new amenities come up, the demand for housing as well as prices can increase.
If you’re a first-time home buyer, getting into the property scene can seem pretty daunting, despite the encouragement and support you may get from family and friends. It is normal to have reservations but don’t let doubts interfere with your better judgement and miss out on a great investment such as property.