02-9893 7881Many people invest in real estate because it has a proven track record of being a good long-term and sustainable investment. Besides the long-term capital growth, real estate investment is also versatile –you can generate multiple sources of revenue from the same investment. In this article, we'll look at some of the reasons behind the popularity of property as a wealth creation tool:
Let's start with the most obvious. The value ofreal estate increases with time in most markets.Suppose you purchase a property for $300,000 in 2020. After 10 years, the value of that property will be over $488,000 with a 5% rate of growth and over $778,000 with a 10% rate of growth.
Locally, according to the Australian Bureau of Labor Statistics (ABS), there was a 4.7% increase in residential property prices in the first quarter of 2022. And, a 23.7% increase in prices in the last 12 months. ABS took a weighted average of eight capital cities: Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra.
Besides the long-term play, real estate investors can also start to make money immediately from their property. For example, you can invest in distressed properties that can be sold for a profit after fixing them up a bit. Or, you can buy a property that's already rented out by the previous owner. In this way, the tenant will help buy the property for you over time.
With COVID-19 restrictions still in place in many areas, a residential property can also double up as a home office –as is the case with many people working remotely.
Another thing to consider is the performance of your investment compared to other popular investment options. According to a 2018 ASX and Russell Investments report, 20 years to December 2017, residential investment property saw better gross returns than Australian shares. The returns were 8.8% p.a. for the shares and 10.2% p.a. for Australian residential property.
With property investment, you also get to leverage your money. The bank puts in multiple times the money you put in as down. Also, after your first property, you can use the equity from that property to invest in more properties.
Investing in real estate is an investment strategy that can give you both immediate and long-term returns. In terms of performance, property investment is also right up there with other long plays. If you’re looking to invest in realty, make sure you consult a professional who is knowledgeable in the characteristics of the property and location.
Reliiance Properties & Investment Services works with you and for you – the investor. We assist you right from the first step of your journey into real estate investment. From selecting a property, to negotiating on your behalf, all the way to helping you with organizing finance – Reliiance Properties and Investment is with you at every step. Because we believe that as an investor, you deserve the best and personalised service at all times.
The freedom to choose the most suitable option.
The freedom to choose the most suitable option.
Most suitable investment options to the table for you.
Most suitable investment options to the table for you
Make sure you get complete value for your money
Make sure you get complete value for your money.
Find opportunities that match your brief and requirements.
Find opportunities that match your brief and requirements.
Are you after quick growth or do you want to be a long-term player? It’s important information to know before you invest.
Even seasoned investors with multiple properties have a clear idea of what they want to get out of each of their investments.
Our strength is in finding the right property for you based on our understanding of your requirements and our network of developers.
With Reliiance Financial Solutions as our associate, you won’t just get a mortgage, you’ll get peace
of mind.
