Why property investment can benefit you. A well thought after investment strategy can undoubtedly benefit you now and into the future, but property investment has to be among the most rewarding.
In this market insight, we highlight some of the best opportunities property investment can offer you:
1. Property investment is a tangible asset
To have the ability to touch and feel your asset goes a long way to keeping an investor satisfied and secured. You can drive past and look at it when ever you want. When comparing this to cryptocurrencies or direct shares, these assets just don’t offer as such. Property investment may be less liquid to some other forms of assets, but its known to provide more investment consistency.
2. Tax deductions and entitlements
Being a property investor provides some very beneficial tax deductions and entitlements making it a more attractive investment. It is a wonderful compliment for a high income earner who pays higher levels of tax. There are many tax entitlements but the most notable more is the tax depreciation you can claim. The newer the property, the higher the tax depreciation. A tax depreciation schedule is a great tool to maximise your claim.
At Crest Property Investments we view the tax entitlements to be another form of investment return on your asset.
3. Regular income stream through monthly rent
One of the best benefits being a property investor is that fact you generate a regular income stream through the payment of rent charged weekly and generally paid monthly. Other than earning interest in a bank account, there isn’t a reliable asset that pays you an income stream that frequently. The rental yield will differ among property types, location and size, but this provides the asset with a smoother and more consistent investment return overall.
4. Long-term capital growth
Capital growth is when the property value appreciates in value over time. The property value will increase over time offering you capital growth. The better the location, the better the capital growth.
As the property increases in value, you may be able to use the equity to further invest. The equity doesn’t have o be only invested in real estate, but it would be secured to the investment property you have borrowed money against.
5. More control
You have good control over your asset. Selecting to buy or sell it, is up to you. You can also rent it to a tenant of your choice and set the asking price to what you believe it should be leased at.
6. The power of leverage
Most property investors borrow funds to purchase an investment property. If the investor is entitled to borrowing money, banks will be more inclined to provide a substantial level of funds compared to buying assets in other investment markets.
What to do next?
This is one of the best investment strategies for a number of reasons. Careful consideration and knowing what to do is needed prior to selecting a property.
At Crest Property Investments, we help source properties for buyers. If you’d like to learn more about buying property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase.
Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
April 2024
