Property investment is simple, but not easy – and that’s not a play on words.
1-Investing in property vs other asset classes:
Whilst some caution that you shouldn’t put all your eggs in one basket, many Australians prefer to invest in real estate because of its distinct advantages over other asset classes.
Investing in shares may yield attractive long-term returns, but it is considered to be more volatile and unpredictable than the property market.
Hence, it doesn’t sit well for low-risk takers, especially those who have no idea how the share market works.
Though you can study the share market, it still requires specialist expertise to know how to invest and invest wisely.
This can be very costly. It’s also possible to make huge losses virtually overnight in the share market, whereas property is a more consistent asset class.
Investing in term deposit savings accounts entails low risk, but it also yields minimal rewards.
One of the big benefits of investing in residential real estate is that the market is dominated by non-investors (homeowners) who don’t think like investors and add stability to residential real estate prices.
2-The 5 ways you make money through property investment:
Knowing how to invest in property is the key. You can profit from real estate in one of four ways, and if you get the combination right you’ll make money from bricks and mortar.
They are:
Capital Growth – To build yourself a sound asset base your properties will need to appreciate in value at wealth-building rates (in other words above-average capital growth.) This will come from strong demand from owner-occupiers (who push up property values) and tenants (who help you pay your installment or your monthly services or even the yearly maintenance fees and we did 💪.)