Property Investment: A Comprehensive Analysis of its Global Position

This essay delves into the assertion that property investment stands as the premier investment choice, examining its merits and demerits through various arguments. It highlights the potential for high returns, tax advantages, and wealth building through real estate, while also acknowledging the volatility and risks associated with the stock market. The essay discusses the impact of the 2008 property crisis and the subsequent recovery in different regions, emphasizing Germany as a prime location for property investment in Europe. It further explores the diverse investment opportunities within the property sector, including vacant land, buy-to-let properties, and commercial buildings, while also addressing the challenges of illiquidity and the daily tasks involved in property management. The analysis also considers the importance of diversification in investment portfolios and the tangible asset value of real estate, concluding that the benefits of property investment outweigh its drawbacks, making it a compelling option for investors worldwide. Desklib provides access to similar essays and study resources for students.

Property Investment is the Best
Investment in the World

TABLE OF CONTENTS
INTRODUCTION
ARGUMENT 1
ARGUMENT 2
ARGUMENT 3
CONCLUSION
REFERENCES

INTRODUCTION
 Investment is the best part of any saving of people or general public which includes
investing huge or little amount into any returnable investments like that of Mutual
Funds, stocks and shares of company or rather into property business.
 Buying and selling of property from several decades is regarded to as one of the best
investments from around the world.
 As this includes making an investment into property which is having dynamic price
and profits linked to itself.
 This is been divided into 2 most important part which is commercial and residential
uses whose after regarding both pros and cons investor will be intended to invest into.
 Many times properties are been held for investment purpose as this could be regarded
to as asset which person is acquiring and holding upon for income generation either
by means of renting it or giving on lease in way of growth into value in coming years.

ARGUMENT 1
 There are many reasons as to why the property
investment is best investment made by people is it
or is not.
 According to Cerutti, Dagher and Dell'Ariccia,
(2017) real estate is very good investment as it is
having very high rate of return, tax advantages and
leveraging the real estate in building up wealth of
person as well.
 One of them could be that of providing better
returns that that of stock market without as high
volatility as it could be.

CONTINUE…..
 While in case of stock market the risk of increase or decrease in value will never
change and then there would be number of factors which are regarded to as
beyond the control of people.
 As the property is tangible assets so it will be giving more control over
investments as people could be able to manage leverage.
 As there was sever crisis of property which took place in year 2008 all around the
world and in most parts as well.
 Piketty, (2015) explained that there were many nations which are still trying to
recover from that global crisis but European nations are witnessing the growth in
year 2018.

CONTINUE…..
 It was also expected that interest rate within UK would increase dramatically but
then also it was the same and thus having interest rate to be around 1% only.
 It was also analysed that Germany is the best country for the investment of
property or real estate in Europe with having major investments in cities like that
of Munich, Berlin and Frankfurt.

ARGUMENT 2
 The investment within property is regarded to as very big business from around
the world as there are number of opportunity in market.
 As there are many options available for making investment into like that of vacant
land, buy-to-let, single home, commercial building and apartment as well.
 But then also it is regarded to as very difficult into investment property as it could
not be allowed to make any short investment into.

CONTINUE…..
 Stocks are also regarded to a more liquid or flexible as compared to real estate
investments as the selling of stocks could be done at any point of time.
 It could also be included that property investments are not considered to as
profitable all the time.
 Wu, Gyourko and Deng, (2015) explained this as anyone who is making their
investment into share of company then this would mean that they are heading
towards owning specified part of that company.
 The investment which is made into real estate would be requiring much of daily
task as it includes lot more activities after investing into property.

CONTINUE…..
 From the view of Harris, (2018) it could also be included that the actual value or
profits of property would not be increasing all the time.
 Especially during the time of inflation it would not be possible for the value of
property to get increased for this reason many times investment into property is
regarded not best.

ARGUMENT 3
 Apart from the above argument it could also be included that with investment into
property or real estate it will help in diversifying portfolio of person.
 As explained by Kennon, (2018) there is huge importance of diversification into
the investment portfolio for any person which is also explained by financial
planners.
 This would help in spreading up of risk over all type of investment and having
low chance of loss over only one or 2 type of investments.
 It could also be noted that if person is having investment into real estate then they
are having greater opportunity of getting tax deductions.
 This is one of the main reason why many financial planners consider it as among
best investments.

CONTINUE…..
 As compared to stock or other forms property
or real estate is having higher tangible asset
value.
 This is because land could be felt and seen very
clearly it is not just recorded into any sort of
paper or documents as shares and stocks are
done.