Why Investing in Properties Considered a Good Investment?

Why Investing in Properties Considered a Good Investment?

Today, there are a lot of investment options available but out of all, investing in properties, or real estate is by far considered the best. Before we delve deep into the concept, let us just go through the basics.  

There is no denying a fact that property buying is a good investment but it also greatly depends on various factors such as capital growth, rental demand, yield, location, types of property, age of the property and the property features. 

Investing in a property is a huge decision because it involves financial investment. But other than that, you also invest in your time, efforts, and emotions. So, the process of property buying is definitely not child’s play. But if you have an experienced professional by your side, the process becomes a smooth ride.  

If you are considering investing in the property, seek the guidance as well as the assistance of Manny Singh, a real estate agent serving in the areas of Hampton Park, Narre Warren and Pakenham. The process of buying a property can be challenging at many levels. To make it easy, it is suggested to hire a real estate agent. A real estate agent plays multiple roles in his day-to-day life. To know more about it, this blog.

This blog will take you through a day in the life of an experienced and established real estate agent.  

What is Property Investment? 

It means investing your hard-earned money into a property that further generates income (also called return on investment). In another language, we can say it is a real estate purchase to generate rental income or earn appreciation.  

what is property investing

Investment properties are generally purchased by a single investor or by a group of investors.  

Buying a property poses less threat and is less volatile as compared to shares and other forms of investment. Moreover, it is a one-time investment through which you get to earn rental income if your property is tenanted. 

Capital Growth – If the value of your property increases, you will benefit from a capital gain when you sell it in near future.  

Other than this, here are some of the reasons you must look to buy a home. You will come across those as we proceed in the blog.  

Investing in properties in Australia is considered one of the biggest no-brainers in the current marketplace. Properties might not give you capital growth as quickly as stocks or crypto. But for constant results, there can be nothing better than real estate.   

Mortgage brokers are more than aware of the current climate with interest rates.  

Future Potential Growth of the Real Estate Market 

Property buying has always been a popular choice for investors in Australia and that too for good reason. The real estate market has consistently delivered results over time, and for mortgage brokers, investment clients are as valuable as traditional home buyers.  

Real estate investment lies on three main factors such as: 

  • The ability to find a tenant to keep up with repayments.  
  • The ability to develop equity in a property. 
  • Allowing the assets to sit and accumulate over time and a chance to use bricks and mortar as a form of managed funds. 
  • Less volatility than stocks or crypto. 

A rental property might seem as if it takes more effort than another form of investment. But if it is compared to the stock market, it is a far surer bet.  

Even though it requires effort in terms of finding good and reliable tenants to consistently get rental yield, the results are better and more consistent. 

Once you sort out this issue of finding tenants, you get much more secure and long-term gains than just crypto or other interests.  

Investment in property delivers results for clients as well as mortgage brokers. 

Tax Deductions Available 

Long-term investment in the property is also beneficial in terms of tax deductions which are on the offer for clients.  

Those with a rental property are able to secure a wide range of exemptions from the Australian Tax Office such as advertising costs, corporate fees and charges, and also rate reductions from the council, land taxes, and insurance. 

Long-term Investment  

Investment property in Australia is just like an open goal of price growth. The investment property market has shown consistent gains over time that are unmatched. Moreover, a property portfolio is one of the most secure bets you will ever find. 

Whether in a capital city with an ever-changing turnover of professionals and international students or in a regional area with consistently low vacancy rates, buying properties to rent out is an investment strategy which makes sense. Also, the mortgage brokers should always be recommended to the clients. 

Security and Stability  

Excess to security and stability has said to be one of the downsides of property investment. It is often said that it works only in the long-term and it takes too long to sell an asset that too only when the time is right. 

Price growth, rental yield and interest rates are unlikely to be as interesting and eye-catching as crypto, shares, currency market fluctuations and shooting star stocks. 

More Control Over Decisions  

Investors love staying in control and they can have more control over their properties than any other form of investment. However, those who stick their cash in Bitcoin can have the value of their investment wiped off just by one tweet from Elon Musk. On the other hand, those who buy bricks and mortar can be as hands-on or hands-off as they like, and can also have full control of their asset. 

Often the rental yield rises. Even tenants can be changed every 12 months to keep the revenue coming in. For better returns, you can invest more money in your property, improve it and enable price growth either through higher rents or by selling the property at a higher value.  

Access to Equity  

It is often said that getting money out of the property is hard. Take for example equity. Well, it might seem complicated and time-consuming to sell a property in Australia, but it is possible to leverage the equity gained in real estate to buy a new house or to get a better deal from your mortgage broker.  

The above points are testament to the fact that one should definitely invest in properties if given a choice between other forms of investment. 

If you are someone who is looking forward to investing in property in Australia, do give a call to one of the best real estate agents Manny Singh. He offers his expertise in areas like Hampton Park, Narre Warren, Pakenham, and other nearby suburbs.

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