Real Estate Investment

You've recently come into a large sum of money. What do you do with it?

Do you spend it all away in a big shopping spree? Save it and hide it somewhere until the time you’ll eventually need it? In most cases, people would suggest that you invest with the money you’ve just received.

The real question, however, is where do you invest your money in?

You could try mutual funds or money market accounts, others suggest the stock market. However, though these options do offer high returns, they are also a very risky investment as they are often unpredictable. Banks also offer investments that often risk free, conversely, the returns will not be as rewarding and would take some time before you could collect.

Real estate, on the other hand, is often considered as a high risk investment. This applies to some properties as they may not be located in an area as well developed or as desirable as the others. One way to avoid this problem is to invest on a property offered by a highly trusted company and to do research and a sufficient background check on the area. You should always check how close the property is to schools, hospitals, retail outlets or malls, churches, and the like, and accessible it is to assess just how prime the property is.

One way to make your money’s worth on property investment is to purchase a pre-selling property as they would offer a better price at a more flexible payment scheme. By the time the lot or unit is turned over, you would have a brand new property that had already appreciated from its original price (which would often increase at 6-15% annually, depending on the property). And based on the demand of the property or area, you can pretty much control the price of the unit in your favor accordingly.