As you know, every investment avenue comes with its own unique set of strengths and weaknesses, but why does property investment continue to stand out as the go-to choice for about 70% of owner-occupiers in Australia?
Let me walk you through 10 reasons why:
1. Consistent performance: Despite the proverbial "boom and bust" cycles, Australian property values have shown a remarkable 7.25% average annual growth over the past three decades. And that figure is even higher in South East Queensland!
2. Stability: The property market is inherently resistant to sudden and wild value swings, largely due to the time-intensive nature of transactions. This trait also puts off those short-term speculators, which reduces volatility even further.
3. It’s understandable: You don’t need any fancy technical knowledge to embark on a property investment journey. Unlike the convoluted world of shares, property investment is easy to understand.
4. Enhances your borrowing power: Lenders are often more willing to approve loans for residential properties compared to other assets, with potential lending of up to 90% of the property
value.
5. Regular income: Real estate offers a reliable stream of income that tends to grow over time, effectively using other people’s money for your mortgage repayments.
6. Assurance: With fewer people able to afford their dream houses and the level of home
ownership slowly falling in Australia, the proportion of tenants is predicted to rise in the years ahead – meaning property will always be in demand.
7. Flexibility: Whether you’re looking to secure your retirement or are after immediate cash flow, property investment provides multiple strategies to align with your unique financial objectives.
8. Long-term growth: Residential properties have a strong track record of significant capital appreciation over time, particularly in areas like the Sunshine Coast. Keep in mind, property values double approximately every 10 years.
9. Accessibility: Property investment is a wealth creation avenue open to all, not just the rich. Even if you don’t have a cash deposit, you can draw on the equity in your home, for example, to buy an investment property.
10. Tax perks: Property investors can claim tax deductions on investment-related expenses, including operational costs, loan interest, and depreciation of property and fixtures, thereby reducing their tax liability.
If you want to take the next step and find out if property investing is right for you,
email me, or call 1800 088 437 to set up a time to chat.
Jason is the Managing Director of Dwyer Property Investments and a trusted local expert. Together with build partner Dwyer Quality Homes, he’s been helping Queenslanders buy profitable, cash-positive, tax-effective investment property for 35 years. Visit dwyerpropertyinvestments.com.au.
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