For most people new to how to make money, property investment is most likely not be one thought or including ways to manage money. If in the survey, may invest the property does not have a choice at all. In contrast, other alternatives such as opening a savings book, shop for craving, give money to parents, treat your friends, will be the choice of the upper level.
However, after several years, if not honest and open, people who invest their money in property, is among those few who are wise enough to choose how to manage money. There are several basic reasons are easy to understand, but often not aware of:
1. Investment in property or land, almost 100% will not go down. Property and land in general is the assets and not liabilities. But we will discuss, the difference between assets and liabilities in the written text that will come.
2. Surveys show that nearly 90% rich people in this world, had assets of property and land everywhere.
3. Wealth of property usually is more sustainable, alias can survive long term, unlike in paper assets, like shares whose value could fall to almost zero. For example, the stock had fallen citybank of USD 40 to USD 2, while I’ve never heard of the land or property prices fall even from say 1 million per square meter by half alone, 500 thousand per square meter, on the contrary increasing land prices soared from day to day.
4. In this world more and more people today still growing, this means, the land will become increasingly narrow relative, because the land is basically fixed (fixed supply), while demand continues to rise. Well according to the laws of economics, if supply remains and demand continues to rise, then prices will go up. This means that as long as demand for land or property goes up, prices will keep rising.
Of course there are many other things that could support the above, but the above facts would be sufficient to support, why we should consider investing in property as a way of managing money wisely.
