Real estate is a secured asset, one that is stable and is always a good investment. Regardless of the market condition, real estate will keep its value or appreciate in time. Timely mortgage payments and having the right insurance will ensure you won’t have any losses.
Most seasoned property investors would often say even if the market crashes, given the opportunities and your ability to strategies your portfolio – there is still good money waiting for you with property. Primarily because people will always need a place to live – regardless
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Here’s more reason why property investing is popular:
Property investors make money right away
If you are after rental investment properties, it generally yields cash flow soon as it is tenanted.
Most of the positive income properties we sell are all turnkey and come with rental guarantees or tied up with a property management which will ensure tenants are ready and waiting.
Equity + Appreciation
Long-term property investments also build equity, not just positive cash flow each month. You technically pay off your mortgage with the rental income you generate and the excess are your profits and for the expenses to maintain it.
Great entry point as a business or starter – lots of option for growth!
Firstly, you don’t need to be a millionaire or spend thousands of dollars to start with. There’s so many financing options that you can shop around – know your options. All it takes is at least 20% deposit and the rest can be mortgaged at the lowest interest you can bargain with.
Others even use their current property as equity – who knows. Speak to a consultant to understand the many ways you can finance your property investment.
You have to understand how you can leverage your assets to diversify your portfolio if you have one already.
Try investing in properties interstate or regional areas as well where potential for growth is. Look around and work with someone to fill you in with the property market trend and stocks.
Tax benefits that you can take advantage of
Property investors can take advantage of tax deductions that other investments are not eligible to like;
• Interest paid on mortgage
• Depreciation
• Rates
• Insurance
• Repairs and maintenance
Your own time, your own rules
Most investors either do it as a full time or additional income gig. But more often than not – investors who also manage their rental properties or those who buy to renovate find it flexible and end up sticking to it as a full time business instead. These vary depending on your portfolio and property type of course.
Risks are manageable
Investing in high yield markets yields better returns and vice versa – both applies whether you are thinking about cash flow gains or capital growth.
If you purchase a rental property in a prime location – expect higher rent and higher property appreciation. If you’d like to go on medium or low then it’s still a no loss because it will still appreciate in time and you’d still get the returns that is bang for your buck. It is completely up to you and the risk you are willing to take 🙂
Positive Income Properties support NDIS high yield investments but only to sophisticated investors who have a background and understand the risk and reward of high yields, and how we help mitigate them.
Start early and act now
Property investing can fit anyone – goal in mind all the time. What is it you want to achieve? How much risk are you willing to take? What type of return are you after? Ask these questions yourself and stick to what fits you.
There’s just so many options and all come with different pros and cons, risks and returns – there is something for everyone to achieve their financial goals. In the current trend now, a lot of 1st time investors and home buyers are competing with seasoned investors in securing a good property investment in NSW and QLD. It is a very hot market NOW. Best time to buy property especially in the South east corner of Queensland.
Please call or email us as we have Positive Income Property investments from House and Land to NDIS SDA housing. We would be happy to help you either buy your fist investment property or add to your portfolio of properties.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
