For any investor, the most important thing is finding the right investment option. If you are an investor, you might have the same question – Which is the best investment option?
With so many investment options out there, it is easy to get confused. Some popular investment options include the stock market, mutual funds, and real estate market. The popularity of investment options will differ from one country to another. In some countries, you will find the stock market as a popular investment option; in some countries, real estate will be popular, and so on.
Also, the risk and expected returns differ from one investment option to another. If we talk about the stock market, it is very fluctuating. It is highly based on the market. A small bit of bad news about the company can fluctuate the share price badly. Real estate is quite different from the share market. To some extent, it is also based on the market performance of the country, but unlike the share market, the real estate market does not fluctuate too much.
In the share market, the company matters a lot. On the flip side, in the real estate market, location plays a significant role. As we know, the property market is all about location; in some countries, this investment option might not be good. Talking about countries like Cambodia, this investment option can be amazing. There are various reasons why real estate is a good investment. Here are some of the reasons:
Population is growing
The number of people around the world is constantly growing. With the increase in population, there will be more demand for properties. More people will be in need of a place to live. The price may not see a huge change in the short-term, but it will increase in the long run. This will ultimately increase the real estate price.
If you are an investor who wants to build a passive income source, no other investment option can beat real estate. In the case of the stock market, there is a passive income, but the work is not limited to buying the shares. It requires a consistent focus on market research and the company’s performance. Talking about real estate, you are required to research the location, property, etc. for once and then buy it. When the right time comes, you can sell it at a higher price.
Before investing, the important thing you need to consider is tax. Depending on the investment option, the tax criteria will differ. Hence, another reason why you should consider investing in real estate is that it can provide you different tax benefits. As a real estate investor, you can take advantage of numerous tax breaks and deductions that can save so much of your money at tax time. It includes deducting the costs of owning the property, operating, and managing the property.
Hedge against inflation
Inflation is something that is killing your money. Selecting the wrong investment option cannot help you hedge against the rising inflation. For example, putting the money in a savings account or fixed deposit cannot beat the rising inflation. Cambodia has an average 3.00% inflation rate every year. If any investment option has returns lower than 3%, it’s not worth it. Talking about real estate, it is booming in Cambodia. Investing in Cambodia real estate can help you fight inflation.
When it comes to investing in the property market, it is essential to find the right agent. Dragon Real Estate is the top real estate agent in Cambodia. If you are interested, feel free to contact us.