Advantages & Disadvantages of Property Business

Advantages & Disadvantages of Property Business

Property investment is still an investment choice coveted by some investors. At first this type of property investment is an individual business. But now has become an investment business that can be used as an asset for the future.

Talk about property investment, do you already understand what are the advantages and disadvantages in running this property investment? Before running this property business, may need to know what benefits and benefits we will get in running this business or business.

There are 6 things we need to know:

  • Protection of purchasing power against inflation.
  • It is a pride for the owner or the wearer.
  • Appreciation of added value (due to its limited and immobility).
  • The added value of its development (such as commercial buildings or agricultural areas).
  • The existence of income from operating activities (leased).
  • It is a good collateral.

In addition to profit, at least we must also know what are the possible losses we will get, the following losses:

  • Depreciation / depreciation of buildings.
  • Shattered if there is an earthquake or disaster.
  • Government control, such as taxation rules and others.
  • Legal complexity and permissions.
  • No Liquid and time constraints.
  • Management and maintenance expenses.

Once we know what are the benefits and risks that we might get in a property investment, of course, which will then need to do is to determine and prepare the things that need to be done to minimize the risks that may happen. As for example, If the risk is a heavy management burden while the property has no tenants, we need to do is to continue promotions up to the finish point is to get tenants. It is quite difficult to get a tenant if the building property that we have is located in a place that is not strategic enough. For that it needs innovations-so there are tenants who want to glance at your property.

Usually for this property investment can run as expected, maybe at least we are not just running an investment business only. What is the purpose, so that investment with one another can support each other if there are still shortcomings.