Are you considering investing your money? Every type of investment has pros and cons, but there are several benefits to consider when investing in property.
One of the reasons people prefer to invest in property is they have greater control over their investment. If they want to make changes to their investment they can. They are able to make improvements to the house in order to charge a higher rental rate and receive a better return
Property investments are considered lower risk compared to other investments such as shares. Although investing in property often produces a lower profit, investors do not have to worry about the value of their house dropping dramatically over night.
Unlike other investments, you are able to increase the value of your property investment just by making a few changes. Many investors prefer to buy older, rundown houses at a low purchase price and then renovate them. Then, when it comes time to sell the property, they could receive a higher return as the property is worth more.
Increase in Demand
The Commonwealth Treasury predicts that Australia’s population will reach 35 million by 2050. If this is true, the demand for housing will increase immensely. Even now there is a high demand for rental properties, so for those wanting to purchase an investment property, there is a good chance of having a low vacancy rate for your property.
Easier to Get Started
Don’t be fooled, investing in property is not necessarily easy; however, it is often a more suitable choice for people just starting out. The stock market requires a lot of education and research. You need to understand how the system works, research brokers and companies within the market.
Whereas most property investors already own/rent a property and have an understanding of what is involved for an owner or tenant. Also, a lot of the research can be done online and if there is something you don’t understand, there are lenders, such as State Custodians, who have the industry knowledge and can answer any questions you may have.
Investing in property may seem daunting, but if you are determined and willing to put in time and effort, you could create a strong passive income for yourself.