Why should you invest in Property?

Each property is unique:
Unlike shares in a company, ownership of property gives you control of a unique, finite thing.  So, each property has its own reality and its own potential to create income.

Property is a passive investment:
If you own the title deed to a property, you control who may or may not use it.  You can sit back and collect the rent on a property just because you own it, of course, it's more complicated than that.  This is called a passive investment.

A property is forever:
Property does not wear out.  Property is held by investors and families far longer than companies usually exist.  This means that you derive income for decades and even generations.

Property rewards specialised knowledge:
Because there is no common stock exchange in property, you can develop localised knowledge or knowledge in a specialised area of property, giving you an investment advantage over all other potential investors.  This can enhance your income substantially.

You can borrow more against your property than against most other assets:
This ability to gear high gives you what is known as the "gearing effect".  If you get a 90% homeloan on a flat and pay a 10% deposit, it means that a 10% return on the purchase price gives you a 100% return on your cash investment.  But beware:  a 10% loss gives you a 100% loss on your cash investment although this is not a crisis as long as you do not exceed our suggested maximum gearing ratio's.

Property is real and rewarding:
The cash you earn isn't the only wealth.  It is also the richness of owning and developing something that you can see and touch.  Don't underestimate the value of this to you as an investor.