When you think of property investment you probably think of the big end of town. But in fact the average property investor is a couple with good equity in the family home and they have one investment property.
It’s a safe way of building wealth to supplement superannuation or even pave the way to early retirement by combining rental income and the benefit of negative gearing to offset the shortfall between income and expenditure.
The latest Australian Bureau of Statistics figures show that property investment is strong, no doubt due to low interest rates and a demand for quality rental accommodation.
I believe property investment should be viewed as a long term project as property goes through cycles but history shows that there is a gradual increase in value over the years.
Many people like the idea of being in direct control of their investment rather than trusting the share market. It’s also nice to be able to see your investment.
There are options for the would be property investor. You can choose to buy an older style home or an apartment or opt for a new property.
The advantage of a new property is that you are starting with everything brand new with all the latest appliances and designer styles. All the wiring and plumbing is new so you start off on a sound foundation. That means there is no initial maintenance required to make the property attractive to prospective tenants.
It’s important when venturing into property investment to ensure that the property is located in a suitable area where there is demand for rental property. The property also needs to be managed by an experienced professional who will find the right tenants and ensure regular inspections.
Of course for some canny investors another alternative is to buy an old property in a sought after area and knock it down and replace it with a brand new home. There are some great tax advantages in building or purchasing your new home.
If you are thinking of investing in property I invite you to talk to the Wincrest team about the options for building a new home.
More news soon.