According to SQM Research’s Christopher’s Housing Boom and Bust Report 2022, Australia's red-hot property market will peak in early 2022. Furthermore, in 2022, Brisbane is expected to be the greatest winner in the Australian real estate market.
Regardless of the movement of the market and the economy, Real estate has historically been a popular investment and is considered one of the best vehicles to build wealth. Investing in property offers a variety of advantages that can be used to achieve various objectives.
Real estate may not have the speed of bitcoin or equities in terms of capital growth, but in terms of producing consistent results over time, it is the best option available. In this article, we list some of the reasons why a property is the preferred investment choice for most Australians.
It is a Safe Investment
All investments have their risk and rewards, however, compared to stocks and crypto, investing in property is traditionally much more safe, secure, and less volatile. Large financial organizations, such as banks, see real estate as a safe asset class and are willing to lend money to most people who want to invest in it.
It can Generate Passive Income
When you buy property as an investment, it can be a reliable source of passive income. Your passive income can sometimes be utilized to cover all or part of your mortgage repayments and ownership expenses. This is getting more difficult as property prices increase but it’s not impossible if you know what you are looking for.
It Offers Tax Benefits
The Australian Government allows multiple tax incentives to encourage property investment. Interest on loans, depreciation, and other property-related charges can all be claimed to lower your tax bill and increase your return. Additionally, those who own rental properties can benefit from a variety of exemptions, ranging from advertising expenditures to corporate fees and charges, as well as discounts in council rates, insurance, and land taxes.
Long Term Investment and can Protect Your Earnings against Inflation
Holding money in the bank’s savings account can lose value due to low-interest rates and high inflation rates. Unlike money invested in a property where lower interest rates encourage homebuyer and investor activity, which raises property demand and, as a result, raises property values.
You can pass it on to your kids
It is a no-brainer that property is a long-term investment that you can also pass on to your kids as part of their inheritance.
There are many more reasons why so many individuals invest in real estate. What’s important is to familiarize yourself with the area and property market before you invest, and plan out a strategy to utilize your real estate investment to reach your desired goal of building wealth. Feel free to call me anytime and I would be happy to help you with your Real estate goals.