5 reasons to invest in property now
There are many reasons to invest in property - so many in fact, that the process can seem overwhelming. However, it's a great idea to consider the reasons that make investing in property now a great idea.
From affordable mortgage rates to tax benefits, there are numerous positives to investing in property now. Plus, if you already have an interest in real estate, this certainly helps, too.
Plenty of choice
From rural Australia to the metropolitan areas of Sydney, there are plenty of places to buy investment property. Vacancy rates vary from town to town and city to city.
That's not to mention median weekly rents, which can vary between locations, right down to the suburb.
There are not just plenty of options available with regards to where you choose to buy, there are also many different types of dwellings available. From a freestanding home that's sure to appeal to bustling families to one-bedroom apartments that are perfect for young professionals, there are various property types to choose from.
Many areas are experiencing strong growth in house prices, which pushes more people to consider renting. This is ideal if you want to be assured you'll find tenants.
Cheap home loans
The Reserve Bank of Australia announced the cash rate would remain at 2.5 per cent on July 1, which spells good news for those looking to invest.
A low cash rate tends to have a flow-on effect with regards to home loan interest rates. Affordable loan options are currently available, making now the perfect time to invest.
Capital growth and home equity
Depending on where you buy, your investment property could see strong capital growth.
As your property rises in value over time, it's undergoing capital growth. This is often a driving force for real estate investment for many Australians.
If you choose to sell the property in the future, this could result in a tidy profit for you. Of course, you'll need to be aware of capital gains tax, which applies when you sell rental properties.
Alternatively, you may wish to build up the equity in your home and build your property portfolio.
Once you start investing and build up equity in your investment properties, you'll have better financial leverage to invest in other townhouses, apartments or other real estate that appeals. This is why it could be a good idea to start your investment portfolio now in order to build up the equity in your home and ideally make the most of capital growth potential.
Something you understand
If you don't have the time or inclination to investigate the stock market, it might not be the best investment option for you.
However, if you want to create wealth in the future, you need to start somewhere.
Investing in real estate can be a great place to start, because it's understandable. If you already own your own home or have had contact with the property industry, you're already on the road toward investing in property.
This isn't to say that buying rental properties is a carefree process that requires little commitment. However, because it's a concept that can be somewhat easier to get your head around compared to foraying into the stock market, it could be right for you.
If you're ready to invest now, start with something you know and investigate the options available to you.
You can get a property manager
Even if you love the sound of investing in property and have a thorough understanding of vacancy rates and predicted capital growth in nearby suburbs, you might be pressed for time.
However, that doesn't mean you can't buy real estate now. Rather than putting it off until you have more time - which could be many, many years away - why not consider the services of a property manager?
Getting an expert on board to ensure you get the right tenants and receive rent in a timely fashion can make taking out a mortgage for an investment property a great option.
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