investment in real properties
DESCRIPTION
Real PropertiesTRANSCRIPT
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
Shop lots
Condominiums
Shopping complex
House
REAL PROPERTIES
INTRODUCTION
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
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.
Definition & Characteristic of Real Properties
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
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
•-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
Advantages of Investing in Real
Properties
Safety aspect
Negative gearing
Tax benefits
Positive asset base
Long-term investment
High leverage possibilities
Disadvantages of Investing in Real
Properties
Disadvantages of Investing in Real Properties
Rising interest
ratesRisk
Bad tenants
Changes Government
Policy
Management and
MaintenanceCapital
Requirements
Recommendation & Conclusion
Recommendation
Investment and
speculate
Real condition of real estate
Location
Conclusion
• There a lot of advantages invest in real properties rather disadvantages