Why Should You Invest in the Australian Property Market
Due to its good balance and high returns, Australian residential real estate has long been an outstanding investment. According to the Australian Taxation Office, there are over 2.2 million rental property investors in Australia, which means every 2 in 10 Australian homeowners also own an investment property. Investment properties provide an appealing mix of perks that might serve as objectives to further your brick-and-mortar interests. Properties are physical assets that are far less risky than other investments such as stocks.
Suppose you are wondering why you should invest in Australian real estate Perth. Here is everything you need to know.
Solid investment
The first and foremost is because brick and mortar assets such as properties are safe. Large financial organizations like banks view real estate as a safe asset. They are inclined to lend money to invest in properties.
You can’t go wrong with property investment.
In general terms, even poorly picked investment property will grow in value with time. No matter where you bought a property in major cities like Sydney, you will never find a cheaper house now than you would seven years ago. Even in smaller suburbs, like Victoria’s Toongabbie – the real estate agents from Elder’s Real Estate have seen a consistent rise in appeal and interest in housing.
Investment property produces rental income; When you rent your investment property, you will have a regular and predictable cash flow. You can utilize the rental income to pay for your property maintenance costs and bank loan payments. In other words, your rental investment property will generate reliable income year-round.
Appreciate in value
Property value keeps growing on average despite a few of its uncertainties. However, property values always rise with time. Historically it is proven that actual estate doubles in value the 7 to 10 years. Over the previous three decades, the Australian housing marketplace has experienced an astronomical rise, with median house values growing to over four hundred per cent. Over the last four decades, the average home price in Sydney has multiplied more than 20 times.
You can borrow money to buy the property.
You don’t necessarily need all the capital at which you bought the property. It requires you to invest around 20% of the asset’s value, and the financial institution’s money can pay for the rest. You can take a loan to pay the remainder of the property purchase price by taking on a mortgage. As the property’s value appreciates, your total income calculation is based on the property’s total value and not on what you initially invested.
Investment property value appreciates continually.
When the interest rates are low, and inflation is high, money in the bank in a financial savings account depreciates. During low-interest rates, investors and home buyers are encouraged to purchase, boosting property buyer activity, and driving up property prices.
Property investments are text deductible.
The Australian Government offers multiple tax benefits to encourage investment in properties. To lower your tax, you can deduct depreciation, interstate and all property-associated expenditures to reduce your tax.
Anyone can own an investment property.
You don’t necessarily have to be wealthy to be able to purchase an investment property. According to the Australian Taxation Office, more than half of the property investors’ annual income is not much more than the Australian national income average.
Properties are secure in good and bad times.
According to the Reserve Bank of Australia, one quarter of the available housing always has tenants. And around 3-quarters of homes are inhabited by the owner-occupiers, supplying extra protection to investors. Owner-occupiers are unlikely to panic selling in unfriendly or fluctuating marketplace situations.
Final but not the least
When looking for a place to invest in real estate, consider purchasing a property in Australia. Investing in the Australian property market always is financially rewarding. There are many other benefits to buying in that part of the world. However, when you commit to such a significant financial investment, ensure your property has no hidden nasty surprises and hire a termite inspection professional.
Termites are wood-destroying pests that hide behind dry walls in wooden frames. Termites are capable of destroying all structural wood in a house. Such damage can result in significant financial losses when you decide to sell the property.