AUSTRALIAN PROPERTY: ‘SAFE AS HOUSES’ FOR PROPERTY INVESTORS
Property is a great investment because you make all the decisions and have direct control over where, when & what you buy.
It is a tangible investment that you can see and touch and decide whether you rent it out or live in it yourself, keep it or sell it.
Being a property investor offers leverage, as you can purchase a property with 5-10% deposit & borrow the remainder, and when the property increases in value, you get 100% of the growth. So if a $500,000 property increases in value by 5% in a year, that’s a $25,000 return. Over 10 years that’s $250,000.
- offers predictable cash flow;
- it appreciates in value, thus keeping up with inflation;
- it provides a higher return because of positive leverage;
- and it offers equity growth through debt reduction, ie: by making additional payments on the mortgage.
Unlike the share markets where there are complicated terminologies you need to get your head around, real estate is relatively simple. You know what a house, unit or an apartment is and though there is a deal of research, finance & paperwork involved, as a property investor this can be made easier with help from experts like us.