123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Real-Estate-and-Foreclosure >> View Article

Investments In Property Verses Investments In Other Business

Profile Picture
By Author: William King
Total Articles: 365
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Ever since man has been earning money, he has been looking to invest his hard earned money in the right and most profitable channels. Investments have been on the minds of people since we can remember. Formidable investment options have competed with each other with shares, bonds and property leading the show. Of the three, property has always held the upper hand when it comes to a safe and sound investment option. Yet, despite all its risks, shares continue to find its own league of followers. If you are a new entrant into the investment market, you need to have a deep understanding of all the investment options in order to invest rightly. The smart investor is the one who spots the best investment option miles away.

Measuring returns

There are several ways to measure the returns that you get from an investment. One is to measure the net income and the other is to measure the change in the value of the asset. And of course you have to keep the risk factor in mind. In more recent times, the definition or the way by which you measure the returns has undergone a change. Returns is now defined as the percentage net ...
... income over a period divided by the value of the property or the net yield, and the percentage change in value over an equal or the same period of time. For example a property with a total yield of 15% and an increase in the value of 5% gives a total return of 20%. At the same time, the risk is defined as the volatility or the deviation over the same period of time.
Why Property?

In the US, shares were declared as the riskiest investment option in the last few years according to a survey. But they also gave the highest returns. The lowest returns were given by bonds and the risk was the minimum as well. While property fared in between the two. So wouldn't you like to invest in a channel that does not have as much risk and at the same time, delivers a standard percentage of returns? A lot of investors look to invest a part of their income in each of the above mentioned assets. This is a smart investment policy because even if a bad situation were to arise, each one of the assets would react differently to it. Not all of them would go through a decline at the same time. The co relation of property with equities is quite less. Hence even if equities fall, it is not necessary that property will follow suit.

Sub classes within the same

Even within property there are two distinct sub classes. One is listed property and the other is directly held property. Of the two the later is the more stable option and also has less risks involved. So if you too are confused by the greatest investment debate of all times, then be rest assured that property definitely holds the upper hand. A two fold income source, least risks involved and an ever growing demand are what fuel's the property market ahead. So what are you waiting for?

William King is the director of Australia Wholesalers: http://www.australiawholesalers.com , Aid and Trade Wholesale Dropshippers Directory: http://www.aidandtrade.com , Dubai & UAE Property & Real Estate Portal: http://www.bayut.com , Pakistan Property & Real Estate Portal: http://www.zameen.com . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Total Views: 351Word Count: 592See All articles From Author

Add Comment

Real Estate and Foreclosure Articles

1. Godrej Zenith Sector 89 Gurgaon: Redefining Modern Luxury Living In New Gurgaon
Author: sapient realty

2. Property With Super: Is It The Best Way To Go Into Property Market Of Australia?
Author: Rick Lopez

3. What Are The Hidden Benefits Of Hiring A Property Investment Advisor?
Author: Rick Lopez

4. Find Your Perfect Rental Property In Somerset Ky
Author: Rok's Rentals

5. Paras Floret Sector 59 Gurgaon: A Haven Of Luxury And Modern Living
Author: sapient realty

6. Best Office Spaces For Rent In Bhopal For Every Business
Author: Ajay Singh

7. Best Root Canal Treatment In Kukatpally, Banjara Hills
Author: vijaya

8. How To Set Up An Smsf For Using Super To Invest In Property
Author: Rick Lopez

9. Living In Luxury And Comfort: Exploring The Top Residential Areas In Dubai
Author: Myrealestateprop

10. Emergency Garage Door Repair: Handle Common Issues In No Time
Author: DEN Garage Doors

11. Buy Flats In Em Bypass Kolkata With Us
Author: Get My Properties

12. Apartments For Sale In Tellapur
Author: vijaya

13. How To Get A Cash Offer For My House Fast
Author: Brett Johnson

14. New Opportunities In Uttam Nagar - M Sanvi Real Estate Portfolio 2025
Author: Sanvi Real Estate

15. Villas For Sale In Kollur
Author: Sri

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: