Investing is a choice many people make at one point or another, in the hope of bringing wealth to their lives. Whilst there are many investment alternatives such as stocks, bonds and cash, property investment tends to be viewed as one of the safest and easiest options.
There are a number of pros when looking at investing in property. Let’s look at the reasons to invest in property in more detail…
Capital growth: The value of your property will grow over time and may be extremely beneficial financially if well chosen. Not only will you benefit from steady capital growth, but regular monthly rental returns.
A safe investment: This is the only investment market which is not dominated by investors, hence creating a natural buffer in the market. It is also the most forgiving investment; if you purchase the worst house in the area, chances are that its value will still increase over time.
Mitigate risk: You can insure your asset against most risks; fire / damage / a tenant leaving, damaging your property or breaking the lease.
Anyone can invest: You do not have to possess a vast amount of knowledge, as you may with stocks or opening up a business.
Control: Unlike other investments, you are in full control of your property investment; you can make all the decisions and have control over all of your returns.
Tax benefits: Although tax benefits should not be used as a decision-making factor, it can be a benefit of investing in property. If your property is negatively geared, it may provide tax benefits.
You don’t need to sell it: Unlike most other investments, when real estate goes up in value you don’t need to sell in order to capitalise on that increased value. You simply go back to your bank or mortgage broker and get your lender to increase your loan.
There’s really no other asset class quite like property!