Appraiser: space, opportunity and life

Property Investment have a Risk

September 30, 2010 | In: property

Investment means the issue is whether money or other services and expects profits in the future or spend money / services that are sure to benefit, not necessarily definite. Investment properties or real estate means the issue or invest in assets in the form of land or building property on it. Other investments like: stocks, bonds, options, deposits, gold, dollars or others.

Short term goal: resale, such as buying land, houses, shop houses, commercial property, then sold again. While the long term to own or rent, such as hotels, office space, Shopping centers, shopping malls, golf courses. This is usually the favorite by a property developer or individual entrepreneur.

The added value because it is not moving and called limited appreciation. Guarantee / collateral is good. Development of such land into office, home shop, or other commercial or developed into oil palm plantations, well this is called value-added development. Revenues for rent or sale in part and resistant to inflation.

But it is not any risk, for example: destroyed if there is an earthquake or disaster, no liquid, management and maintenance expenses, depreciation / depreciation of buildings, government control, such as taxation rules etc., there are legal issues and licensing.

Whatever form of investment, investors are still counting the cost of investment properties, how many return-result, and time of return.

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