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The Profitable Of Property Business

Do you agree that property business is a profitable business? In fact, most people think property business  (sale and purchase of land, houses and shop) is relatively easy compared with other businesses. However, the practice in the field is not easy as imagine by some people. Many investors who already invest their capital in property does not even benefit and get losses due to the location of the property that is not strategic,because of way  broadening  / or other public facilities because of the legality letter is not clear.
Many investors has loss in property business because they are not investors. They are the speculator who bought the property. They buy property with the expectation the price will rise from 6 to 12 months. They are often less careful in analyzing the condition, the legality of location and properties that they bought

Once again,in fact, property business  is very beneficial when we are not become a property speculator. Therefore, we must become experts in property field. Most of property  business / real estate is the people who are experts in this property. They do not buy the properties, land and buildings on the basis of speculation. They buy properties under market value because, strategic location, good future prospects to the legality and don’t believed have a problem.

Property vs Franchising Business / Franchise

We believe that property business more profitable and more secure than franchise business. When investors can not choose which franchiser tested, so bankrupt opportunity in franchise business is very big. Moreover, at this time many ‘imitation’ franchiser which in fact they have not called as feasible franchiser because don’t fulfill the requirements as franchiser. As he is still new, not yet profitable business, not to have a good system and the brand has not been known by knowledgeable consumers.

In franchise business, most of investor money will be used for the cost of investment such as purchase business equipment, rental shop, to business operations. Thus, when the franchise business is not running, automatic money of investor  losers and will not return or exhausted.

For successful franchise business, investors should not stand by and rely on franchiser. Investors should be actively involved in managing the business. In addition, at the franchise business or other business usually Return of Investment (ROI) or the level of return on investment could reach 3 – 5 years.

Now compare it with  property business. investors money will used to purchase property such as land, building houses and shop, plus a small part to renovate. Other costs or operational costs is very small. Possible losses in this business is very small because of the money investors will return at least the sale of capital property return. And this possibility is very rare because usually the price of land and buildings are always increased every year.

The advantage in properties business are better than the usual business or franchise business. This business also will not sequester of investor time, it will not be involved in daily activities, day to day operations.

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