The Advantages of Physical Investments
Property is one of the oldest asset classes proven to be resilient against inflation. Besides enjoying the appreciation of land and building prices (Capital Gain), investors can also enjoy monthly or annual cash flows from rentals (Passive Income).
Things to Consider
- Location is Key: Rental demand heavily depends on accessibility and infrastructure around the property.
- Asset Maintenance: There are maintenance costs that must be set aside every month.
- Low Liquidity: Selling a property takes a considerable amount of time, unlike cashing out mutual funds or stocks.
Ensure you have an adequate emergency fund before locking your money into property assets.