Why Property Still Remains One of The Best Investments
Investing in property is popular with Australians as a way to build long-term wealth, and it’s easy to see why. Real estate has historically continued to show strong and steady capital growth. Even though the news may say that the housing market is cooling down, many may see that as a good opportunity to buy.
Here’s why property remains one of the best ways to invest:
You are in full control of your investment
Having a tangible asset such as an investment property can be reassuring because you can see, inspect or sell it at any time.
Your tenant could be the one paying your mortgage
Rental income could work wonders and increase your cash flow as a property investor. The rental income you generate may cover all or part of your investment loan, and having regular rental income could mean more money in your pocket.
The potential tax benefits
Don’t forget; you can claim back many of the costs associated with maintaining your rental property, including Property Manager’s fees, council rates, fixtures, repairs and maintenance costs, and the loan interest.
Also, where the rental income is less than the expenses associated with servicing the loan, you may be able to deduct the net loss on your property from your gross income. This makes property investment more affordable as you get more of your regular income back as a tax benefit.
You can add value
Irrespective of how the markets are doing you can add value to your rental property by doing renovations and improvements. And the good news is that what you spend on renovations and fixtures can often be claimed back as tax deductions, often via depreciation.
Even beginner investors can find it simple
Understanding how you make money on property isn’t complicated and doesn’t require specialist knowledge. As a homeowner, you’re already familiar with the property buying process and buying an investment property is similar. Once you understand the key home features that will appeal to potential renters, choosing the best place you can afford in a suburb with growth potential could give you a good head start.
Property investment could be your ticket to an early retirement and the right time to invest in property may be now! It could be the best path to growing your personal wealth and a comfortable retirement.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of investing in property or growing your property investment portfolio, you can contact us for information about the best options for you when it comes to your mortgage.