Why invest in property?
The reasons to invest in property are as individual and varied as the investor themselves and only you know whether your goal is to build wealth, supplement your income or be in a position to rent one of your investment properties to your children when they leave home. The decision to choose the real estate market as your investment forum is one which is more widely understood because when you invest in property you are investing in something tangible. When compared to share market or money market investments, or even term deposit and savings account investments, with an investment property you can see it – you can even touch it if you like – and having an element of reality in your investment portfolio can make it easier to understand, manage and maintain; for example you can see if your property needs a new carport after the storm, but it can be harder to part with investment funds to patch up a bad day on the stock market.
Property investment is also one of the most secure forms of investment as it has the potential to both earn you money and save you money through:
- Capital growth as your property increases in value.
- Rental returns which can supplement your income.
- Tax benefits where much of what you spend on your property can be claimed back as a tax deduction.
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