Are you thinking of investing in real estate? There are many reasons why people choose to grow their wealth with property. Here are a few reasons why we think it is a good idea to invest in property:
Investing in property is simpler than you think
Once you have your finances sorted out, you can start researching the areas that you want to invest in. If you do your due diligence with inspections and valuations, there’s little risk that you will overpay or buy a bad property.
Unlike other investments classes, property offers you with many options in terms of growing the value and income on your property. You can also control where you buy, how you buy and when to sell.
Real estate is less volatile than other investment options, such as stocks or mutual funds, especially in uncertain economic times. The continuing demand for housing, fuelled by strong population growth ensures property prices are supported. Even if house prices fall, you don’t make a real loss until you actually sell the property.
Easy asset to understand
Unlike the share markets where there are complicated terminologies you need to get your head around, real estate is relatively simple. The strategies are pretty straightforward as well. The most important things you really need to know are capital growth, cash flow and yields. The most complicated aspect is probably around mortgages where you need to understand how each loan type works. This is where a good broker will come in handy.
The taxman helps you pay off your investments
You can claim a range of tax deductible expenses through your investment property, which will help reduce your tax bills and improve your cash flow.
Your tenants pay your mortgage
Another great advantage to property investing is that your tenants pay down your mortgage while you sit and watch your investment grow in value.
Property offers predictability
Property is more predictable than other investment classes. You can look out to 18 or 24 months into the future and know which direction the market pressures will be pushing. This is unlike the share markets where anything could change within seconds.
Property can make you rich
Real estate makes more millionaires than any other asset class.
If you have recently bought an investment property and need the services of a rental property, contact the Ethan Property team to have a chat about how we can assist you.