There are many different ways to invest your hard-earned cash in Australia and so rather than making it easier to decide what you want to invest in, it has made it much harder than it needs to be. When people think about investing, they commonly think about putting their money into fixed-interest accounts, buying government bonds, investing in stocks and mutual funds. These all hold a certain element of risk and while the property market is certainly not risk-free, based on what has been happening over the past two decades we can be pretty sure that things are looking quite bright for the future.
As with anything in life that is incredibly important, you need to reach out to the right kind of professionals to make sure that you get property investment advice before you put down your money on the counter. If you have never really considered purchasing real estate as part of your financial portfolio then the following are just some of the top reasons why it makes perfect financial sense.
- It allows you to diversify – There is a common saying here in Australia that you should never put all of your eggs in one basket and this applies to your portfolio as well. You should be investing in a diverse number of different things but real estate should definitely be part of it. If you base your choices on what has happened to the property market in Australia over the past 10 years or so, you will see that the price of property has been on an upward trajectory and doesn’t show any signs of slowing down.
- It provides you with equity – If you invest in property and then you decide to rent it out to tenants then these will be the very people who will be paying for your mortgage payments every single month. In all likelihood, the amount of money that you charge for rent will exceed your mortgage payments and so there will also be extra money to invest back in the property or to spend on yourself on a few luxury items.
- You get excellent returns – Not only do you get rental income but the property remains yours at all times so if you decide to sell it at a later stage then you can make a significant profit. Australians who bought property 30 years ago are now able to sell the same property for $1 million or more. Returns don’t really get any better than this and so this is why you should seriously consider property investment now.
In order to be able to take advantage of other opportunities that come along, you need to have cash flow and so the monthly income that you receive from your rental property can provide you with this very thing. You can also use your property as some kind of collateral in case you have any financial issues and you need to borrow from a financial institution.