Buying Investment Properties

Buying Investment Properties

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​ intended investment; or​ it​ may be ex-post, i.e., actually realized investment, or​ when investment is​ not merely planned or​ intended, but which has actually been invested or​ implemented .​
This is​ so true when Buying Investment Properties .​

Another classification of​ investment may be private investment or​ public investment .​
Private investment is​ on private account, i.e., by private individuals, and public investment is​ by the government .​
Private investment is​ influenced by marginal efficiency of​ capital i.e., profit expectations and the rate of​ interest .​
It is​ profit-elastic .​
Public investment is​ by the state or​ local authorities, such as​ building of​ roads, public parks etc .​
In public investment, profit motive does not enter into consideration .​
It is​ undertaken for social good and not for private gain .​
Investment which is​ independent of​ the level of​ income, is​ called autonomous investment .​
Such investment does not vary with the level of​ income .​
In other words, it​ is​ income-inelastic .​
Autonomous investment depends more on population growth and technical progress than on anything else .​
The influence of​ change in​ income is​ not altogether ruled out, because higher income would probably result in​ more investment .​
But the influence of​ income is​ negligible as​ compared with the influence of​ population growth and progress of​ technical knowledge.
Examples of​ autonomous investment 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 means investment which occurs in​ direct response to​ invention, and much of​ the long-range investment, which is​ only expected to​ pay for itself over a​ long period, can be regarded as​ autonomous investments.

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