Why Invest In Property?

This is the first post in a series of 6 all about buying an investment property. Topics covered will be:

• Why Invest In Property?
• The Return On Your Investment
• Choosing an Investment Property
• Choosing an Investment Loan
• Tax and Your Investment
• Managing Your Asset

Check back soon for part 2. I hope you will find them informative.

Why invest in property? The big difference between property and any other type of investment is that you can actually touch it. It’s bricks and mortar, not just numbers on a screen.

It’s also considered one of the more solid, less volatile forms of investment. Investors tend to like property for its:

• Potential capital growth (increase in value).
• Ongoing rental return.
• Tax benefits.

You don't need a big salary to get started. Lenders consider the potential rental income you’ll get from the property when calculating how much you can borrow. So property is a viable investment option for first time property buyers as well as existing property owners.

If you already own your own home, and have a reasonable amount of equity in it, you mightn’t need to raise any cash to start investing. Many lenders will let you use that equity as a deposit for the investment property.

But if you don’t already own a property don’t be put off. If you have a deposit saved, an investment might be a good way to get into the property market. While you won’t get all the grants and concessions that come with buying a home, you don’t have to wait till you can afford somewhere that suits your needs. You can buy something that might make you some money instead.

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Mike Cormack
Aussie Home Loans Joondalup