So you have some hard earned money you want to invest. There can be numerous options, but have you ever wondered what most millionaires would suggest as the best place to put your bets on - it's real estate. In economies such as Australia, real estate is a golden goose. As long as you stay on the residential road, the path is pretty straight and simple.
Anyhow, if you are a bit unsure on what experts say from their experience, and you are still skeptical about investing in a piece of land with something on it, here are four good reasons that might convince you.
1. It's Safer and Simple
Real estate works differently than other investment options like stock. The basic difference is the risk it carries; it's smaller. It's less volatile and promises a steady income stream and positive cash flow for a long period of time. Also, the residential real estate market is simpler to understand and to enter. There are a number of people who actually became investors after they realized how their personal property's value increased and how they could actually generate money out of it. So, if you think you don't have knowledge and experience, all you need to know is that there are a lot of people like you out there and there are lots of people who are willing to help you get started and gain the knowledge and experience you will need.
2. Prices are Negotiable
Once again, comparing real estate assets with shares in stocks, there is one obvious advantage. The price of the property is negotiable. If you have the power to communicate, or access to a resourceful buyers' agent, you can actually get the property you need at a price you desire. Besides, at certain times and in certain areas there may be a plethora of undervalued properties that you can invest in without breaking your bank.
3. Tax Breaks, Benefits, and Incentives
Believe it or not, the government wants you to invest in real estate. Don't believe us? Just look at the incentives and benefits you can get as an investor. You can actually write off the investment expenses against tax. And if you plan to sell an investment property you have held for more than a year, you only pay the capital gains tax on half the profit. The government has several special incentives such as the National Rental Affordability Scheme for investors interested in affordable housing. Having a good taxation adviser is essential as there are negative gearing options available as well. It is never a good idea to invest solely for the taxation benefits it affords but is one of the ways investment property is a good investment.
4. You are in Australia
Lastly, the only reason you need is that you are in Australia, and your economy is thriving, supporting a blooming real estate agency. It is a market that is actually gaining a lot of international attention as well. Only recently, Chinese buyers alone are reported to be investing around 44 billion dollars in Australian real estate. All these signs signal a positive growth in the years to come, and therefore, real estate is really an investment you can count on.
Toni Planinsek, principal of Planinsek Property Group, is happy to answer any queries through social media - Facebook and LinkedIn. She has prepared some free offers to help you on your road to becoming a successful property investor. To access yours go to www.toniplaninsek.com.au