Financial advisors spend much of their time recommending where their clients are best served investing their hard earned dollars. Between shares, bonds, fixed interest rate savings accounts and property, investors have myriad options to grow their wealth. While each option has its pros and cons, and people’s investments goals may vary, property offers one of the safest investments and a number of benefits. This makes it one of the smartest places to invest money over the medium to long term. Here are some of the reasons why property is where you should be investing your money.
Can Secure Your Future
Bricks and mortar investments can be sold off to fund retirement, so it’s little surprise that people are turning towards them as a long-term investment. Even better, if you’re not living in the property, it can be a stable source of income as you rent it out. Houses also can’t go broke like companies can. Banks know this – that’s why they are willing to lend up to 90 per cent of the home price.
Tangible With More Control
There’s a lot more peace of mind for mum and dad investors to be able to see their asset. There are also a number of things owners can do to increase the value of their home to command a higher sales price or rental yield, which can give homeowners a greater sense of control compared to other investments that are less tangible.
Leverage Potential
Property can be leveraged against other investments. With less of your own money tied up in the investment, even if you only own 10 per cent of the property and the bank the rest, you’ll still be able to leverage the percentage of what you have contributed, allowing you to trade up to more valuable investments to grow your wealth further.
Simplicity
Despite the amount of paperwork, buying property as an investment is actually relatively straightforward. Once finances are sorted out, there is a great amount of control over the type of property you invest in which means if you do your research regarding house values there’s little chance you’ll overpay. Unlike other investments, real estate is fairly simple to understand – with most of what makes a strong property investment common sense, adding additional peace of mind for investors. Furthermore there’s little for owners to worry to ensure ongoing income from the property. With the right property management service, which is offered by a number of companies, landlords can ensure the property remains rented to a suitable tenant and attracts the best possible rental yield.
Less Volatility and More Predictability
Everyone needs a place to live and this fundamental need means that investing in real estate will always be of value. During uncertain economic periods, real estate won’t crash like stocks can, with demand set to continue due to rising populations.
Most properties offer reliable and solid capital growth, and for those looking for a long-term investment strategy, when due care is taken to purchase the right property, it’s one of the safest investment strategies available. This makes property the number one choice for investors who want to mitigate any risk over the long term.
