Even though it has advantages, property investment also has several things that need to be considered so as not to experience losses compared to investments in other sectors. This is inseparable from the immovable, local and diverse nature of the property. At Shapoorji Hadapsar Annexe, you can invest in property with promising benefits.
1. Burden Management
Property owners or investors cannot allow their investment to continue with increasing returns, without ensuring the property is in good condition. He also has to pay additional costs to maintain the condition of the building so that income from rent can increase.
2. High Capital Investment
Property investment can also be said to be a capital intensive investment. Why is that? Because the greater the capital invested in the property, the relatively greater the returns that the property investment will get.
3. Affordability Investment
In the property business, prices reflect supply and demand conditions. Property prices are set based on the nature of the local market as well as trends affecting the demand and supply of property.
4. High-Cost Transaction
To invest in the property sector, you have to pay higher costs than investing in other sectors. These costs are in the form of taxes.
5. Time-Consuming Acquisition
Buying the property that you want cannot be in a short time, it can be in a matter of weeks or months. This is also explained by the lack of liquidity of the property.
6. Lack of Knowledge
Limited knowledge is due to the localized property. The price of a house in one place is not necessarily the same as in other places. This makes investors observant and makes surveys of the targeted locations.
7. Building Depreciation
Property investment is based on land and buildings, although from year to year it increases — due to land prices that increase due to scarcity — but the buildings on it theoretically have a lifespan. This is different from land that has a long life, aka eternal.
8. Physical Hazard
Compared to other investments, property investment carries a risk of destruction of land and buildings that can be caused by earthquakes, landslides, tsunamis, and others. However, this can be overcome with insurance, so that practically the damage caused by a disaster can be eliminated by the additional cost of paying the insurance premium.