Juliet Risdon
Real estate has been around as humanity. There has never been a time where we did not need shelter and a place to live. All of us have lived in properties in one form or another, and are aware of the benefits of having four walls and a roof to protect us from the elements, store our other possessions and provide a sense of privacy homeliness. But besides its basic function as a place of abode, real estate has a number of other important roles in today’s society which we will explore today.
Enables economic activity
Besides the obvious function of providing commercial space for businesses to operate, the real estate industry supports economic activity by acting as a common form of security to finance entrepreneurial ventures. Innovation and business ownership financed and supported by loans taken out on property enables a dynamic and healthy economy.
Provides employment
The real estate industry itself is huge and thus provides employment for a significant portion of the working population. Employment takes the form of construction workers, architects, maintenance personnel and surveyors, contractors, real estate agents and consultants. In Q317, DSEC states that the construction industry employed 32,300 people while the ‘Real Estate and Business Activities’ sector employed 29,700 people in Macau.
Supports institutional funds and retirees
The real estate market has always acted as a secure and attractive asset class for institutional investors such as pension funds, REITs and insurance companies to invest in. Although it has had its share of hiccups, the real estate market has traditionally been less volatile than the financial markets, providing a good foundation for institutional investors.
Acts as an instrument of personal financial investment, wealth storage and accumulation
If you’ve been in Macau for a while you probably know someone who has made money from the property market, if you haven’t done so yourself. Property investment is one of the most common ways for people to invest and growth their wealth. But without knowing the key concepts, you’re just guessing when you try to figure out whether property is a good investment. Over the next few articles I would like to introduce you to some basic concepts of property investing, starting with the ‘The 4 Ways to Make Money in Real Estate’.
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers investment property & homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
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