5 Reasons to Invest in Property

Property investment is an excellent way to accrue wealth over long periods of time. Read on for 5 reasons that property investment could be the right choice for you.

Property investment is an excellent way to accrue wealth over long periods of time. It is the method most Australians have used to build wealth, even if this is only through buying a family home. Other investments such as shares can also be successful, but property is an excellent market in which to invest. Not everyone who invests in property is successful. However, if the market is dealt with well it can build wealth consistently over a period of time. Read on for 5 reasons that property investment could be the right choice for you.

1. Anyone can do it

Anyone with a relatively small amount of capital is able to invest in property and reap the benefits of doing so. It is important when investing to prepare yourself by finding a reliable buyers agent in Sydney to help you understand the market and the pros and cons of buying any particular house. If you have a good credit rating and steady employment it is possible for anyone to invest in property. In a market which has created more Australian millionaires than any other, the potential is great.

2. Security

Whilst the current property market waivers in the wake of the global financial crisis, you need only look at the overall trend of property prices to know that property investment in Sydney is still seeing steady growth over the years. ‘As safe as bricks and mortar’ is a well-known saying for a reason. Whilst a business may become bankrupt, a house cannot. By investing in property you are accruing assets which are solid entities capable of withstanding a poor period of trading or a sudden and unexpected drop in the value of shares. When the price of houses begins to drop there is no rush to sell, in fact the opposite happens because people hang onto their homes until they are worth more, so the value of houses fluctuates much less than the value of shares.

3. Bigger investment opportunities

One of the best aspects of property investment is that you can almost always do it with someone else’s money. By placing a deposit much smaller than the value of the house it is possible to get a mortgage, enabling you to invest far more than you would otherwise be able to. In other investment markets it is almost impossible to accrue funds to begin trading, but in the housing market the house itself acts as collateral, making the investment worthwhile for the bank.

4. You are in control

Importantly with property investment you are in control. By managing the property and the price at which you rent it, there is very little deviation in the income you will receive from your investment. Unlike in a business, there is no deviation dependant on sales because the tenant will provide a fixed rent every week or month.

5. Income that grows

Rental income pays for itself because you can use the rent to pay off the interest on the mortgage. Rental rates in Sydney have been increasing above the rate of inflation for years and the government’s ongoing struggle to provide social housing for those who need it will ensure a need for residential rented accommodation in the future. If you can invest in a property that fits the needs of future tenants then rental income is generally safe.

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