Whether you are an Australian citizen or a foreigner looking for an investment with good returns and minimal risks, property investment should be top of your list. While some may argue that stocks, managed funds and shares are better options for creating wealth, many experts point to real estate as your best bet.
According to the Australian Bureau of Statistics, home ownership in Australia has been fairly stable at an average of seventy percent for decades. Investing in real estate not only allows you to have a tangible asset that will likely be in demand for years to come, it also presents less risk compared to shares and stocks that may lose their value in a day. This coupled with the fact people will always be in search of a place to live, gives you more reason to purchase an investment property.
If you are buying to rent it out to someone else or live in it, here are some four reasons why property is such a great investment It’s relatively easy to get started
You don’t need any specialist know how to venture into the property market. There is relatively enough information in the media about the Australian property market and helpful tips to get you started as an investor.
To make the most out of your investment, you may consider purchasing your property where there is a lot of movement. A good option would be a place near a university, close to a defense force base or a mine. This will allow you to rent it out for a good monthly passive income and when the property value has gone up you can then sell it at a good profit.
It may not seem easy when you are shopping for a mortgage, but lenders love property. Depending on the lender you go with, your credit score and other factors, you can get up to 95% financing on a home loan which may not be the case when you apply for other loan types. Lenders view property as a low risk investment and one where they can easily recoup their cost should the need arise.
The global financial crisis taught us one important lesson, the further away you are from your investment, the harder it is to understand its true value. However, with a property, it’s easier to get information from people around you and know its value. Also, whether it’s an investment or not, if things were to take a turn, you can easily move in and when things get better, you can move out and rent it out again which is not the case when you own a bar of gold or in possession of a share certificate.
The continued urbanization of the major cities and a stable economy which has seen an increase of household annual income, Australia presents a good ground for investments. As the cities continue to grow, there is a significant growth of movement from within the cities and even foreigners. Everyone moving in or around the city be it to get a job or access other amenities are likely to look for a place to live. The demand for housing is bound to skyrocket in the near future making.
If you’ve been thinking of growing your investment portfolio, we hope this article helps you make the right decision.