{"id":2669,"date":"2022-05-27T10:15:49","date_gmt":"2022-05-27T10:15:49","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/9-reasons-property-is-the-best-investment\/"},"modified":"2022-05-27T10:15:49","modified_gmt":"2022-05-27T10:15:49","slug":"9-reasons-property-is-the-best-investment","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/9-reasons-property-is-the-best-investment\/","title":{"rendered":"9 reasons property is the best investment"},"content":{"rendered":"

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Key takeaways<\/p>\n

Property investment gives you a multitude of options when it comes to growing the value and income of your property.<\/p>\n

Property investing is relatively simple if you follow a time-tested, proven investment strategy.<\/p>\n

The property market is less volatile than other investment asset classes such as stocks or mutual funds.<\/p>\n

The property offers more financial leverage than many other asset classes.<\/p>\n

Property has consistently been the major source of wealth for Australia’s multimillionaires.<\/p>\n

If you by a quality asset and are prepared to hold property over a number of years, it’s bound to rise in value.<\/p>\n<\/div>\n<\/div>\n

Forget investing<\/a><\/u> in the share market, bonds, or even gold.\u00a0<\/strong><\/p>\n

And definitely avoid crypto!<\/p>\n

Whether it’s planning for retirement, simply building your wealth, or planning to leave a legacy for future generations, here are 9 reasons why the residential property market is the best place to invest your money<\/a><\/u>.<\/p>\n

1. You have \u201ccontrol\u201d over your investment<\/span><\/h2>\n

Unlike other investment classes, a property investment gives you a multitude of options when it comes to growing the value and income of your property.<\/p>\n

\"Control\"<\/p>\n

Property is a great investment because you make all the decisions and have direct control over the returns from your property.<\/p>\n

If your property is not producing good returns, then you can add value through refurbishment or renovations or adding furniture to make it more desirable to tenants.<\/p>\n

In other words, you can directly influence your returns by taking an interest in your property and by understanding and then meeting the needs of prospective tenants.<\/p>\n

And you can also control where you buy, how you buy, how much you buy, and when to sell.<\/p>\n

2. Property investing is simple<\/span><\/h2>\n

Unlike other investments – like shares or more complex \u2018instruments\u2019 such as derivatives – property is fairly simple to understand.<\/p>\n

It is also tangible – you can look at it, touch it and even live in it.<\/p>\n

You know what a house, unit, or townhouse is and you don\u2019t need a 60-page prospectus to tell you all about it.<\/p>\n

Warning:<\/strong> <\/em>Just because something is simple to understand doesn\u2019t mean it is easy to do<\/a><\/u>.<\/p>\n

If property investing was easy everyone would be a property investor, and a successful one.<\/p>\n

Of course, property investing is relatively simple if you follow a time-tested, proven investment strategy.<\/a><\/p>\n

The problem is that most of us act emotionally and irrationally when it comes to money.<\/p>\n

Some of us are too cautious and stay in our comfort zone and invest in our own backyard, while others are in too much of a hurry and chase the next hot spot.<\/p>\n

3. It gives consistent, solid growth<\/span><\/h2>\n

As long as there is demand for property, you have a good chance of realising solid growth from your investment.<\/p>\n

In contrast with the stock market, which tends to be more volatile and complex, property investment outperforms many other asset classes.<\/p>\n

\"Growth\"<\/p>\n

It\u2019s important to remember Australia\u2019s demand for property will be underpinned by the government\u2019s \u201cbusiness plan\u201d to increase our population to around 40 million people by the middle of the century.<\/p>\n

That means we are going to be adding another Melbourne, Sydney, and Brisbane to our housing market in less than 20 years.<\/p>\n

Add to this huge demand the fact that we are a wealthy nation and likely to remain amongst the wealthiest people in the world and this will underpin home values in our capital cities.<\/p>\n

4. Property investment offers stability<\/span><\/h2>\n

As I touched on above, the property market is less volatile than other investment asset classes such as stocks or mutual funds, especially amid volatility.<\/p>\n

Australia\u2019s property market continues to be propped up by the fact that close to 70% of properties are owned by homeowners and around half of these have no mortgage against their home.<\/p>\n

In fact, the total value of Australia\u2019s residential real estate market is close to $10 trillion and is only a total of around $2 trillion in debt against this.<\/p>\n

Sure some young first homeowners have bitten off more than they can chew when getting onto the property market, but they tend not to sell up when things get tough \u2013 they would rather eat Maggi noodles than sell their homes.<\/p>\n

Of course, our property markets are cyclical, and at times values slump a little, but it\u2019s worth noting that these price drops are not real losses until you actually sell the property.<\/p>\n

As I said, homeowners rarely find the need to sell up and property investors should have a long-term focus and cash flow buffers to see them through the ups and downs of the property cycle.<\/p>\n

5. You have more leverage<\/span><\/h2>\n

The property offers more financial leverage than many other asset classes.<\/p>\n

And the more leverage you have, the quicker you can build wealth.<\/p>\n

\"Leverage\"<\/p>\n

Fact is, property investors, use other people\u2019s money in three ways:<\/p>\n