A middle class person, to accomplish his dream of starting a business would arrange money by taking loans from banks, relatives or would sell the ancestral properties and gold ornaments that he owns. Starting a business and taking it to the next level are two different scenarios. With many Growing Economies opening the doors for International players like Walmart IKEA Investing in small Retail business is extremely risky these days as you can’t guarantee success. Today, things are different … people would rather visit an Air Conditioned shopping mall than visiting a nearby retail shop to make a purchase .Due to this reason , may small traders have either shut down their shops forever or moved to a location where they think their business would be secure . I’m not scaring you if you’re thinking a invest your money in Retail business; I’m just trying to make you aware of the risks involved in it. If were in your place, I would give up my thoughts of starting a small Retail Business and would instead add a new property to my possessions due to following reasons:-
- High Returns from Investment: - After purchasing a property, you can expect an increase in its price day by day . By the end of the year , you’ll find a dramatic increase in the price and you can easily sell it for further investments .Suppose you purchased a land for RS 55 lakhs / 1,00,000 Dollars and 11 months from the date of purchase , you find a person who’s ready to pay you twice the amount of money that you had paid ..And you finalize the deal, Haven’t you earned more than 50 Lakhs/ (1, 00,000 Dollars) in the year ? .. Don’t you think this is much higher than what you probably would have earned through profits in the Retail Shop?
- Earn from the Rent: - This is what you are supposed to do when you’re a property owner. This is a smart way of earning money from the comfort from your home. If you get a rent of what you could have possibly earned from the retail Shop …then why to invest your money in Retail Business?
- Money Security: - There are no losses to suffer in such investments. Whatever investment you’ve made in the property, you can always feel secure about it.
- Tax Benefits: - Many countries in the world offer tax benefits over such an investment . Tax policies are different for different countries, so I can’t rally add much to this point .
So let us conclude that investing in properties is a better option than investing in small businesses .
