Every person in today’s world likes to have his/her own property. People usually like to invest in properties as compared to other areas. But is it good to invest in it? There are both advantages as well as disadvantages of investing money in properties. But I think it is a good idea to invest in it. There are always some pros and some cons of doing anything in this universe. In the similar way, owning a property may also lead to difficulties at times but not always.
By investing money in properties, you become the boss of it. That is, you have full privilege of doing anything with it. You can use your property in growing crops, can make a shop, can build industry, and can make your own house and many more. It all depends upon your needs and requirements. The most important thing is that you can increase your wealth by owing a property. Most of the people make their houses and then give these on rents. This is a very smart way of getting money back as what you invested. Property is a tangible resource, that is, it always has some value. The stock market may go to zero, but property will never. And in today’s scenario, the rates of the properties are ever increasing.
If you buy a property, you will always be in benefit. You invest less money and when its rates increase, sell that so that you are in profit. Moreover, a property can also be used as leverage; you can always borrow against it. It is a long term investment. If you give your property on rent, it will become as your life time income. Property plays a major role in lives of people after retirement or in cases when they are jobless. In such scenarios, the monthly income that you get from your tenants provides you a great help and you do not feel helpless. That becomes your main asset and helping hand.
Moreover, you can avail various tax benefits if you have your own property. Various deductions could be claimed like repair, insurance, maintenance, interest given on loan etc. So, there are multiple advantages of investing money in property.
Few disadvantages include liquidity, bad tenants, and rise of interest rates. At times when things go wrong, you always have an option to sell the property. However, at that time, the rates may not be equal to or more than that you paid for it. In such situation, it is always recommended to wait for the perfect time and favorable market situation, so that you are not in any kind of loss. In some cases, problems arise due to bad tenants. You should always choose your tenants properly and carefully and should consider all other factors apart from the rent. People at time, might have to pay from their own pockets due to vacancies in property. All factors should be considered in detail before purchasing any property.