Download - Investment in real properties
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FIN 533PERSONAL FINANCE
INVESTMENT IN REAL PROPETIES
Prepared for: MADAM SHAHREENA DAUD
Presenter : A’FIFAH BINTI MOHD YUSOFAHMAD AFIDZ BIN MOHLISIN
MASWADI BIN AZIZMUHAMAD SHAHRULFITRI BIN
MOHD SULAIMANNOR AZWA BINTI MD RADZI
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Shop lots
Condominiums
Shopping complex
House
REAL PROPERTIES
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INTRODUCTION
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WHY DO PEOPLE INVEST IN REAL PROPERTIES ?
• Less volatile compared to equity
• Opportunities of growth due to the stage of development in economy and society
• Perceive an intrinsic value of the property
• Available for small investors compared to government bonds
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WHAT NEED TO BE CONSIDER WHEN INVESTING IN REAL PROPERTY?
• Location • Who is the developer?• Evaluate sources of financing • Make the right decision to enter and exit the
market.
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Definition & Characteristic of Real Properties
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Definition of Real Properties
includes land and buildings, and
anything affixed to the land.
not those which can be
removed
Other name is real estate
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Characteristic of Real properties
- easy to manage- show to customer
Tangible
No fixed maturity
Requires Management
- need to be handle - control the management
-do not matured - can be more that 90 years
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•-for apartment cannot be divided
•- for land may be divided into plot.
Indivisibility
•-cannot be destroyed
•- last long term and very durable
Durability
•- fixed location.
Immobility
•-different and unique.
Heterogeneous
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Advantages of Investing in Real
Properties
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Safety aspect
Negative gearing
Tax benefits
Positive asset base
Long-term investment
High leverage possibilities
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Disadvantages of Investing in Real
Properties
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Disadvantages of Investing in Real Properties
Rising interest
ratesRisk
Bad tenants
Changes Government
Policy
Management and
MaintenanceCapital
Requirements
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Recommendation & Conclusion
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Recommendation
Investment and
speculate
Real condition of real estate
Location
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Conclusion
• There a lot of advantages invest in real properties rather disadvantages