Despite the sensational property stories you might have read in the news, investing in a property remains one of the safest investments for Australians.
When it comes to investment types, it will help to do your own research. Of course, there are risks with buying a property just as there is with all other. However, residential property investment is less volatile and is much easier for most Australian.
This is one of the biggest reasons why it’s become the great “Australian dream.”
Keep in mind that not every property is created equal and many Australian markets will perform much stronger than others. For instance, the house and land packages Sydney offers good properties in prime locations, complete with ample of facilities and a great environment, a combination that adds increasing value of the property itself.
Here are the reasons why you should invest in real estate:
It gives you shelter or income. The biggest advantage of owning a property is obviously your personal space while waiting for your asset to grow. You’ll be rest assured knowing that one day, you won’t need to worry about any rent or mortgage repayments, and as a plus, you can rent out your property and have tenants help you pay the mortgage off for you.
Benefit of value adding. You read it online, in news, magazines and your friends. Selling properties really pay. As such, owning a property gives you the potential of renovating it to make it more appealing to buyers. To see how this works, look at the difference between a renovated and a non-renovated home in your area to see how it transforms the property’s value.
Your property will always have value. Even if you bought a property in a slowing market, your property will always hold a value. Why? People will always need homes and while property value might be unpredictable, it can earn a rental income or you can live there yourself to save on rent.
Tax benefits. As a property investor, you can offset a lot of your costs through tax deductions. If you’ll invest in a property, then it’s well worth looking for a good accountant to assist you in making the most out of your investment.
The property market can be predicted. Doing your research and studying about the common market influences, such as job growth and major development will make it easy to figure out the locations that are likely to see growth in the future.
Here’s a quick list of what to look out for:
Research the median prices through a reputable avenue like Residex or RP Data.
Buy in a location you know well. Your knowledge in that area will give you an edge to potential buyers, and will ensure you won’t buy in the worst suburb or street.
Tenants and buyers seek lifestyle, so ensure that our investment property is near a popular mall, park or other recreational areas.
That’s about it for home investments. Keep in mind that property is normally the best long term investment, so try not to panic if the market goes down in the short term since the property might still regain or even multiply its value in the years to come.