Property Investment and Valuation: Note 1(c) Property Investment Advantages of Investing in Property Investor has more control over the property purchased Fewer acquisitions need to be made where large sums are involved Property values are generally less volatile than stocks and shares of which prices change daily Companies are often highly geared making returns less secure than direct property investments When stock markets are depressed, it is still possible to sell property at reasonable price Tenants of property often pay their rent in advance, some quarterly, whereas dividend on equities in most cases are paid half-yearly in arrears Rent continues to be paid by tenants even if the company concerned is making a loss Rental income is a more secure form of investment since it is paid ahead of bank interest Even if a tenant enters into a liquidation the investor still retains the property asset. Following a liquidation, a company's equities will have minimal value, if at all Mos
