Why Property is a good investment

Why property is a good investment

Ready to make some money on a low-risk investment? One of the best options is still property-investment. When it comes to investments, there are few that are always as reliable and easy to finance as real estate. Of course the real estate market has its up and downs, but the investment will always appreciate, unlike shares in the stock market. No matter what happens with the economy or how bad a recession is, property still is a good investment.

Land and property become more valuable as population increases and the land becomes more scarce. This in turn makes the land or property more valuable. This could be one of the most lucrative and advantageous investments that any person can make.

Investing in property can also assist create credit. This is really a valuable asset when applying for a home loan for a luxurious retirement property. Each and every payment which is created on the mortgage helps minimize the mortgage payments and build equity, developing extra credibility with lenders for future investments.

Investing income can be incredibly profitable for any person who understands what they’re performing. Understanding the positive aspects can assist people choose no matter whether or not property investing is really an excellent selection for them.

The benefits are financial in the long, medium and short term & these range from:

-long term - capital growth

-medium term - increased rental income due to inflation and the increase in market  rent

-short to medium terms - tax variations, tax minimisation, negative gearing and depreciation

However remember that it is best to seek proper advice from qualified experts in their respective fields in order to maximise the benefits from your investment property.

Of course with all the advantages there are risks involved too. The risks of investing in residential property include:

-Interest rates could rise.

-The property could be untenanted for a period of time.

-You could get "bad" tenants.

-It could take up a lot of your personal time.

-House prices could remain static, or even fall

When you invest in property, you are establishing the basis for a lifetime income. This requires persistence and self-education. The saying goes “Buy land, because they’re not making anymore of it”