Here are several reasons why Renesial Leong likes property investment over other forms of investments:
>Cash flow on a monthly basis
Make sure your rental income is able to cover mortgage repayment, service charges and other expenses.
>Leverage
A 10% downpayment is equivalent to 100% ownership. Be careful with the gearing though.
>Capital appreciation
Well located properties have good capital appreciation over time, especially landed units.
>Property investment pays for itself over time
If the rental income is sufficient to cover the monthly expenses, the property pays for itself over a period of time.
>Return on investment
Well thought out purchases, when put on the rental market, generally provide a positive return on investment.
>Control
You have control over what and where you want to buy, and the type of properties you are comfortable with. It is also within your control whether you want to rent or put it up for sale.
>Hedge against inflation
One of the reasons why property appreciates in value over time is due to inflation. The price increase in new properties is generally reflected in an increase in existing properties.
>The benefit of use
Whether it is a house, an apartment or a commercial property, there is a demand for it if the property is well located.
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