Buying Investment Properties

Investment may be counted on the gross or the net basis. Net investment is gross investment minus depreciation. Investment may be ex-ante or planned or anticipated or designed investment; or it may be ex-post, i.e., actually realized investment, or when investment is not merely implemented or intended, but which has actually been invested or implemented. This is so real when Buying Investment Properties.

Another classification of investment opportunity may be private possession or public investment. Private investment is on private account, i.e., by private individuals, and public speculative is by the government. Private investment is persuaded by marginal efficiency of capital i.e., profit forecasts and the rate of interest. It is profit-elastic. Public purchase is by the state or local authorities, such as constructing of roads, public parks etc. In public investment, profit motive performs not key in into consideration. It is undertaken for social good and not for private gain.

Investment which is independent of the quality of income, is called autonomous investment. Such investment opportunity performs not vary with the rate of income. In other words, it is income-inelastic. Autonomous possession depends more on population growth and technical progress than on anything else. The impacts of change in income is not altogether ruled out, because even greater profit would more than likely result in more investment. But the lower of income is negligible as compared with the harm of population growth and progress of technical knowledge.

Examples of autonomous possession are long-range investments in houses, roads, public buildings and other forms of public investment. Most of the investment is undertaken to promote planned economic development. It also includes long-range investment to bring about technical progress or innovations. Public investment shows investment opportunity that occurs in direct response to invention, and much of the long-range investment, which is only expected to pay for itself over a extended period, can be regarded as autonomous investments.