For most people who just know how to make money, investment property is likely not to be one of thought or including how to manage money. If in the survey, may invest property does not have an option at all. In contrast, other alternatives such as opening savings accounts, shopping for goods craving, give money to parents, treat friends, will be the choice of the new.
However, after several years, if not honest and open, people who invest his money in property, is among those few who choose to be wise enough to manage their money. There are several basic reasons that are easy on the understanding, but often not realized:
1. Investment in property or land, almost 100% not going to go down. Property and land in general is an asset and not liability. But we will discuss the difference between assets and liabilities in writing papers that will come.
2. Surveys show, nearly 90% of wealthy people in this world, which had assets of property and land everywhere.
3. The wealth of property usually is more sustainable, or can survive long term, unlike in paper assets such as stocks whose value could fall to almost zero. Call it for example, shares Citibank had fallen from $ 40 to $ 2 while I’ve never heard of land or property prices fall even from1 million per square meter by half alone, 500 thousand per meter square, opposite the more land prices soar 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 and demand still continues to rise, the price will go up. This means that as long as demand for land or property goes up, prices will keep rising.