As far as investments go, investing in property is one of the more robust options, especially long-term. It’s an easy investment option for beginners to understand and generally a successful one given the right conditions are met. If you are thinking about dipping your toes into investing, here are five essential reasons why investing in property is a no-brainer!
1. “Safe as Houses”
If you are familiar with the expression “safe as houses”, well it turns out that it’s true. Studies have shown that the Australian property market – despite its short-term ups and downs – has increased long-term. So, if you are prepared to invest long-term into a property, generally your outcomes are predicted to be very successful.
Comparatively, investing in other risk associated options – such as stocks and shares – property has proven to be more successful to the average investor. Though shares have the potential for much greater returns, the risks are much greater. Thus, property is considered the be the safer investment.
2. It’s Easy for Beginners
You don’t need to be an expert in property to get started as an investor. The truth is, most successful Australia property investors didn’t intend to make their fortunes through property. Most, simply bought a house to live in, saw the value increase and realised the potential in property investing.
3. It’s Relatively Easy to Get Finance
Unlike getting a loan for stock or share investing, getting a home loan is a relatively streamlined process. It may not feel like it when applying for a mortgage, but in Australia lenders like property. Home loans are in fact a major part of most Australia banks business models. Plus, lenders are more likely to lend on residential property than any other class of property. This makes borrowing to invest in property relatively easy for even first home buyers.
4. It’s Flexible
Depending upon what your financial aims are, you can pick and choose what types of property you wish to invest in. It allows for extremely flexible property investment strategies, letting you choose what suits you best.
5. You Have Absolute Control Over Your Investment
If you choose to invest in stocks or shares, typically you need to hire a broker to manage your investments. In other words, you have to trust your financial future into the hands of someone else. Property investments however, allow you direct and complete control of your asset (assuming of course that you don’t break the law and keep up with your mortgage repayments).
This is such a powerful thing! It means that you can add value to influence it’s worth, raise the rent to increase your cash flow and apply any other of the many strategies available to you to make your investment ideally suit your needs and future goals!