Ever thought about property investing in Australia? Property is considered to be one of the soundest investments you can make. According to the Australian Tax Office (ATO) in the 2017-2018 tax year, over 20% of Australians owned an investment property. Over 30% of that group were of retirement age. Property investment can be the key to securing your financial future into retirement.
If you have considered property investing in Australia but don’t know where to begin, the experts at Corbwood & Associates can help.
5 Reasons To Invest In Property
Property has always been favoured by investors and there are many reasons why:
- Property is less volatile than shares.
- Investment properties can generate rental income.
- Investments in property can be used to offset your tax.
- Property Investment in Australia doesn’t require any specialist knowledge, unlike shares.
- It’s a simple, physical asset that you can see and touch that makes gains with little to no input.
Building a portfolio of investment properties is one way many Australians prepare for their retirement and gain financial independence. Keep in mind, however, that property investing is a long-term strategy for building wealth and requires patience.
Things To Keep In Mind When Considering Property Investment In Australia
While you don’t need any specialist knowledge to own property, it’s a good idea to seek our professional advice prior to making a purchase. This can help you avoid any possible pitfalls such as non-competitive loans or spending more than you should.
Without careful assessment of your current financial situation and future financial goals, an investment property could create unforeseen issues. With all real estate investing in Australia, the risks and downsides are:
- That the rent doesn’t cover the costs involved in repaying any mortgage taken out or upkeep of the property.
- A rise in interest rates will mean higher repayments.
- Should your property be unexpectedly vacant, you will not have rental income to cover the costs.
- Property is not always easy to offload and liquidate should you need access to funds.
- If the property market does not grow as expected, you could end up owing more than your property is worth.
- There are higher costs to enter and exit than when investing in shares. Stamp duty, legal fees and agency fees can create significant expenses.
Should you wish to pursue property investing in Gold Coast, Sunshine Coast, Brisbane & around Australia, it is imperative that you do your research. For the uninitiated, investing can feel overwhelmingly complex. At Corbwood & Associates, we can help you navigate the investment process and ensure it is an investment that serves you well financially, both now and into the future.
Whether it is your first investment, an investment you want to make through your SMSF or something you have done before, our team can help. We adopt a holistic, strategic approach to wealth creation so you can approach retirement stress-free.
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