Here are just five reasons why Australians choose to invest in property.
1. Build an investment property, build wealth
Planning for financial security is vital for living a life of ease and creating a comfortable retirement. Investing in the right property can set you up for life. Make wise choices about the type of home you invest in and improve your long-term financial position from the very beginning.
2. Kick off a portfolio
Once you invest in your first property, purchasing further investment properties becomes more achievable. As the value of your property increase and you continue to pay off your loan, you create more equity which you can leverage to purchase another investment property. And another.
3. A reliable investment
Unlike buying a lottery ticket each week, building an investment property is a tried and tested approach to building wealth that you can rely on. For example, the last 25 years have seen the median value of Australian houses deliver an annual growth rate of 6.8%*, with an increase in value of over 400%.
4. Property that pays for itself
An asset that someone else helps you pay for? It almost sounds too good to be true, but that is often the reality when you own an investment property. Rental income from your tenanted investment property will come some or all of the expenses related to the property, while its capital growth increases.
5. Tax advantages
No-one wants to see more of their hard-earned money go to the tax department than necessary. As an investment property owner, you may be able to take advantage of significant tax benefits. Many costs associated with owning an investment property may be tax deductible, including maintenance and repairs, the interest on your loan and property management fees.
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Fairhaven Homes recommends that you consider whether it is appropriate for your circumstances and that you seek independent legal, financial, and taxation advice before acting on any information in this article.
* Data via Corelogic