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Should you invest in property?

When it comes to money, most people say: “The more, the better!” Hence, they’re always on the lookout for new opportunities to multiply their income. While there are several opportunities available in the contemporary business environment, investing in real estate is a really attractive and lucrative option.

However, it can be difficult to decide whether property investment is your cup of tea or not. This is we’ve listed out a few reasons why you should go down this route.

Property is more predictable

Are you slightly risk averse and do you prefer more predictable investments? Well, many investments such as stocks and bonds can be highly volatile. Thus, investors cannot be sure of when to expect a return and how much to expect.

Investment in property, on the other hand, can provide more stability if done the right way. This is because rates are more predictable as the market tends to move according to trends.

However, natural disasters or events can also shake up the real estate market, but probably not as much as they affect the stock exchange. Therefore, investment in property allows investors to stay relatively calmer and more stress-free while waiting for returns.

Property is an inflation hedge

When you’re fretting about the price hikes you invariably want an equivalent increase in the value of your investment. Otherwise, you’d be left dealing with a loss. While other investments may not be feasible inflation hedges, investment in property definitely is. Rental returns and capital appreciation usually amounts to more than the increase in inflation, ensuring that the investor is not fighting a losing battle.

In countries such as Pakistan where inflation can be highly troubling, having investments that act as inflation hedges can really help keep financial concerns at bay.

Property keeps capital safe

Are you afraid of using up all your cash stored in the bank? We all know those people who start spending money freely when they know they have a bit of cash on the side and before they know it, it’s all gone! Investment in property keeps your funds safe because you cannot liquidate them easily to spend on trivial urges.

Property is also a highly worthwhile investment if you think that stocks and bonds are not offering sufficient returns. Usually, returns on property are higher than returns on stocks and bonds as some properties can even appreciate 100% or more with time. This gives investors mindboggling returns in the long term.

Returns from property can finance other investments

The returns from property, generated in the form of rental income or from capital appreciation, can easily be used to fund your other investments, too. For example, you can simply channel your rental income into stocks. Similarly, capital appreciation in one property can be used to sell that property and buy two of its kind in a cheaper area. If managed effectively, this can certainly lead to good wealth accumulation.

There you have it! These are the many reasons why investment in property may be a great option for you. So, are you ready to make the leap?