There is a good reason why astute investors choose real estate investments over the share market. Real estate has unmatched benefits ranging from significant tax advantages, to the more obvious generation of rental income in addition to the capital gain on the property itself. The cost of owning an investment property is deductible, whilst the value of your property appreciates over time, assisting you in growing your capital.
Investment in Australian real estate gives investors the perfect combination of desirability, profitability and stability. Here is why:
Australia is one of the most popular travel and holiday destinations in the world. From pristine white beaches, breathtaking coral reefs and splendid wilderness to a bustling nightlife and rich cultural scene – Australia knows how to impress just about everyone!
Did you know that property in Australia values typically double every seven to ten years? Add to it the fact that Australia is a growing nation with an increasing number in its population, and you have a market that has a very high potential for growth.
Are you familiar with market crashes and price fluctuations in the overseas property market? Properties in the US, UK or other countries can fall several thousand dollars in price within weeks – something you won’t have to worry about in the inherently stable market of Australia.
Reasons to Invest In Property
You don't need a big salary to get started
Property is a viable investment option for first time home buyers, as well as existing property owners. This is because lenders consider the potential rental income you’ll get from the property when calculating how much you can borrow. Additionally, if you already have a reasonable amount of equity in your home, you might not need to raise any cash to start investing. Banks will lend you up to 80% against the security of residential property.
Proven wealth creation strategy.
More millionaires have been created through property compared to other forms of investment. The old saying holds true where; if you do what successful people do, you will become successful yourself. The majority of wealthy people have used a real estate portfolio to increase their long term wealth.
Even during unfavourable economic conditions, property do not devalue to zero or go broke, in comparison to companies who may. Even after allowing for the ups and downs of real estate values, residential property in major capital cities’ residential markets has had steady growth and has proven to be a solid investment over the long run.
Banks have always recognised property, and especially residential real estate, as an excellent and secure form of investment. This is part of the reason why they'll lend you up to 80% of the value of your property. As the majority of residential homes are owner occupiers, and the population will always need a home to live in, this ensures that there will never be a panic sell of the whole market like one which can occur in the stock market.
In addition to providing you with passive income, the rental income you receive from your investment property is usually indexed to inflation and the value of the property. This allows you to borrow and gain the benefit of leverage by helping you pay the interest on your mortgage which has historically outpaced inflation.
Property should be considered as a medium to long term investment, and short term fluctuations in the market needs to be placed into perspective. Over the long term, property will proof to be a solid investment choice. This can be observed from the trend during the past 25 years where the value of the average property in all capital cities has doubled in value every 7 to 10 years.
"Other people’s money"
This concept pivots around enabling leverage to allow you to grow your capital, and providing you have buffer in the form of your own equity and can afford the repayments, this is a legitimate strategy for wealth creation
Despite being a safer form of investment option, Property investments are still subject to market risks. However, this is nothing that you can’t conquer with expert help. Our real estate and property investment professionals are geared with the knowledge, experience and expertise required to make intelligent investment decisions. You’ll find comprehensive help in choosing not only a property that provides you a high potential of capital growth, but also one that can bring in maximum net returns.
We network with Australia’s most well-known and well-trusted banks, in addition to non-bank financial institutions that offer a range of competitive options. Furthermore, in our target to be your one stop shop for all property investment needs, we use our network of realtors and agents to find trustworthy tenants with good rental and employment histories. Never again will you have to worry about finding or replacing your tenants. This is all in addition to managing and maintaining your investment property to ensure it remains attractive all year round.