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Home >> Investment >> Property Investment

Property Investment

There might not have been more millionaires than those who believe in the policy of “buy cheap and sell dear.” This is especially true in the case of property where a substantial amount of capital gains can be realized when the value of the property or real estate appreciates over time.

Property can be implied to mean both movable and immovable property (generally referred to as real estate property or realty). While movable property, also called chattels, such as money, securities and goods can be moved from one place to the other, immovable property such as land and the objects permanently attached to it such as buildings constitute immovable property. There also exists another property called intellectual property which refers to the right over artistic creations or inventions.

Immovable properties have the essential characteristic that only the title to the property changes by virtue of the transfer whereas the physical location of it does not change. Property investment is usually referred to as real estate investment or investment in immovable properties or assets. Property or real estate investment is currently booming in the country. The investment in property essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities.

Real estate investment can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale. Investment in property is treated as a long term gain and investment professionals argue that 5%-20% of investment portfolio should be directed towards property or real estate. As a surge in the realty market, online real investment opportunities have also emerged since the last decade.

Property investment in India has especially picked up in the last decade and the low price on property in Romania presents a tempting option for intrepid investors willing to take on the risks associated with dealing in property. Property investment is also a lucrative option for investors in Poland and there also have been news about an investment boom in many Latin American countries like Brazil. The Malaysian government, in view of the rise of FDI flows into the country and high GDP growth rates, has announced that capital gains taxes on property deals will be scrapped.
Europe seems to be new destination of rise in property investments with Slovakia, Slovenia and the Baltic states experiencing a rapid rise in property investments. Slovakia was nominated by the World Bank in 2004 for having the fastest improving investment climate. That property investment is commensurate with the growth prospects of the economy can be seen with China, Thailand and Vietnam becoming hotspots of investment in the current years. The German economy is slated to grow at 2.5% annually which will make it one of the leading property investment sites by 2008.

Lastly, property investment from the Caribbean islands of St. Lucia and Grenada to plush sea-facing palaces in Dubai is expected to pick up in the coming years with property rates falling and the rising economic growth making it a favorite place for foreigners to invest. With the rise in property investment in the event of falling property prices in many countries of the world, online property investment opportunities have also emerged.




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