With travel and activities closed over the last year due to the pandemic lockdowns, many Australians were able to stash away extra cash. Instead of going overseas for an extended vacation this year, Aussies are choosing to invest that extra money.
So what’s the best place to invest for the biggest return? With so many different investment options, it can be hard to choose.
We have seen record-breaking numbers of investors turning to the housing market this year, and it’s no surprise why.
Here are five reasons to invest in property, and why investing in property is the top choice for Australia investors!
1. Return on Investment
Let’s face it, if you’re going to invest in something, you want to get a return on that investment. When you invest in property, you can get consistent returns through rental yields, plus a LOT of other financial benefits!
Did you know that when structured right, purchasing an investment property can even help you pay off your home loan without increasing your payments?
If you’re ready to start putting more money back in your pocket every week, property is a great investment choice.
2. Security
In these uncertain times, security is more essential than ever. When you choose property investment, you can take on less risk with a relatively fixed return unlike the stock market that can go up and down on a daily basis.
Long-term investors who buy and hold property almost always make a profit. If property prices dip, you haven’t lost money unless you sell, keeping you in control of your finances.
3. Tax Benefits
Taxes are a part of life, but we all love it when we get a tax break. Believe it or not, property investment can provide huge tax benefits! If your interest and other costs are more than your investment income, you can take advantage of negative gearing benefits. You can claim a tax deduction for depreciation in value of your investment property. Also, you can apply for a Tax Withholding Variation through the Australian Taxation Office (ATO). This will allow you to receive a tax break each time you receive your salary instead of waiting 12 months. By saving on tax, you can use the extra revenue to double the rewards with a second property! Not sure how to structure your next investment property for the best tax advantage? Schedule a free conversation with one of our property experts.4. Property Growth Rate
The property growth rate in Australia has been steadily increasing, and studies show a big spike in property value expected over the next year. If you buy in a good location right now, the value of your investment property can rise substantially! If you’re ready to get started on your investment property journey, now is the perfect time to jump in before prices inflate.
5. Financing Is Easy
Right now, it is easier than ever to get a home loan and at a low rate! Mortgages for properties form a major part of any lender’s loan products. The banks were leery of lending during the pandemic, but now they are open and ready for business. It’s relatively easy to secure finances to invest in property, and interest rates are at record lows. Plus, after you have a property under your belt, that property can help you secure additional finance. You can use existing equity to secure other loans and buy even more property. It’s like Monopoly—only in real life!Earning Money Through Property Investment
The Australian housing market is thriving, and there are numerous opportunities available for those looking to invest! Unlike investing in a super fund where you have to wait 30 years or more to spend it, an investment property gives you immediate financial benefits. When you choose to invest in property, there are two different paths you can choose to obtain a good return on your investment.- Earn income as a landlord by renting the place out
- Wait for the property to increase in value, and sell it at a profit
We Can Help
We can help! At OneCorp, we combine your vision with our knowledge. We’ll help you find your dream property while holding your hand through the whole process! Getting started on your investment property journey has never been easier:- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
