Have you heard that? More and more entrepreneurs are investing in the property market, and that is not surprising. Are you wondering why real estate investment in Australia is booming? We will tell you the reasons and also the ways to succeed in your investment. Keep reading…
“Due to the low-interest rates, the money in your savings account is hardly profitable these days.”
In some cases, it even costs money because the capital gains tax (the savings tax) is higher than the savings interest. That is precisely why it is so smart and interesting to invest in real estate. Even now, the economy is not doing so well because those who continue to invest during a recession will reap the benefits in the long term.
Real Estate Investment
Investing in property is the fastest step, but that often requires a substantial investment in, for example, an office building, lease house, or commercial property. A frequently boosting investment in Melbourne is that in single-family homes. You quickly get a return on the proceeds of the rent. The group of a single person living is increasing and with it the demand. Therefore, investing in small homes is not a bad idea. It immediately yields money when rented out. Moreover, the rent often rises with inflation so that it cannot go wrong.
An additional advantage for investors is that more and more people are forced to rent a house because the value of homes continues to rise. So now is the time to move ahead and invest in real estate.
Why Invest in Real Estate?
The yield from rented accommodation is quickly a good percent amount. Bank interest is almost zero, stocks fluctuate strongly in value, and the tax on your assets is often more than one percent per year. We think there is no investment that is as safe as investing in homes that are rented out. After all, there is still a great shortage of affordable homes, and starters cannot obtain a mortgage. They do have to rent.
Investing in rented housing provides a stable and good return with manageable risks and is, therefore, a good alternative to saving.
Reasons to invest in the property market
1. POSITIVE CASH FLOW
In general, rental income is more certain than, for example, income from shares. These revenues bring in a fixed amount of cash flow every month. The attractive rental yield offers extra pension and income.
2. PROTECTION AGAINST INFLATION
If we look at the historical evolution of real estate, real estate has a much stronger correlation with inflation than stocks or bonds. Rental income moves with inflation. If there is inflation, rents will rise and, therefore, also the rental income. When inflation picks up, real estate income will also increase.
3. NUMEROUS TAX BREAKS
Investing in real estate is and will remain interesting from a tax point of view. The government subsidizes the ownership of real estate. For the rental of a home, you receive a tax benefit on the mortgage loan.
4. LONG-TERM ADDED VALUE
Due to the rising real estate prices in major cities and the scarcity of well-located land, investing in property provides long-term added value. Not only will the building increase in value, the land will also yield more. Value will continue to increase as demand exceeds supply.
5. INVESTING IN REAL ESTATE IS CAREFREE
If you choose an investment property that you want to rent out later, you can enjoy the benefits of real estate and leave the traditional worries behind. A home with a rental service is every investor’s dream. As an investor, you are looking for an investment with a high return no matter you save, buy shares or invest in property. So, this one is the safest and risk-free option for investing.
6. BUILD YOUR PENSION IN ADVANCE
As an independent entrepreneur, you will have to think about your pension more often. An investment in real estate can give you a little more space when you are bought at retirement age. Whether you have paid off your mortgage, receive rent or even put your investment up for sale at that point, the extra money will come in. This strategy to put something aside for your retirement ensures that you can build up a substantial pension if all goes well.
To succeed with your real estate investment, contact the best real estate agent in Cranbourne and surrounding suburbs and leap the long-time benefits of your investment.