Why Invest? Why Property?

Did you know?

70% of Australian retirees rely on Government subsidies or are living below the poverty line. I know I do not want to be part of this statistic, living on less than $300 per week (the Australian Aged Pension per couple).   So… what is the solution? Invest for your future. Not just throw it out there and hope for the best, but invest where it is going to serve you best.  A good financial advisor can not only help you clarify your financial goals but define an achievable investment strategy. And it is never too late to start! There are many ways to invest that bring sound short and long term return, but with interest rates so low and the Australian property market flourishing, property investment has never looked better. Two of the main elements of a good investment are: 1.      High capital growth that allows us to grow our net worth, and 2.     Secure net income, which increases over time and works toward paying down the mortgage. Investing in residential property therefore must be key to your wealth-building strategy.  Let’s look further into why this is so: 1.      More Millionaires – According to the BRW Rich 200 list, property has consistently been the major source of wealth for Australian multimillionaires. And it’s the same the world over.  2.     Anyone Can Do it – Property Investment isn’t just for the wealthy. Banks will lend up to 95% against the security of residential property, so with a steady job and a little capital, most Australians can afford to get into the market.  3.     Security – residential real estate literally offers the security of ‘bricks and mortar’. And the property prices in the major capital city residential markets have been steadily growing for years.  Banks have always recognised property as an excellent security, especially residential real estate.  4.     Income that grows – rental income received from the property investments has increased and this increase has outpaced inflation. With population growth continually increasing and demand outstripping supply, rental properties are set to offer continual high returns.  5.     Consistent capital growth – good capital city residential property has an unbeaten track record of producing high and consistent capital growth.  6.     You can buy it using someone else’s money – With real estate investment, as we have mentioned, while you need a small deposit, the bank finances the rest. That is leverage, using a small amount of money to control a much larger asset.  The ability to use this leverage significantly increases the amount of profit that can be made, and allows you to purchase a significantly larger investment than you would normally be able to do.  7.     You are in control – you make all the decisions and have direct control over the returns. By finding the right property in the best current location you will be able to meet the needs of the current demographic pushing demand.  8.     Tax benefits – these are many and varied and incredibly important, from the depreciation you can claim to all expenses associated with your investment, including a tax deductible trip to inspect your property once a year.  9.     You don’t need to sell it – unlike other investments, you don’t need to sell when the value increases.  You can use this to your advantage, go back to the mortgage broker and use this asset inflation to further your property portfolio, making your future look even brighter.  10.  It’s forgiving – history has proven that property prices rise. Over the past 45 years, Sydney and Melbourne residential real estate prices have doubled every seven years.  At Calla Property we know property.  We take the guess work out of property investment for you.  We take the time to understand what your goals are and help you to identify the property investments that will aid you in achieving your financial goals quickly and with a minimum of risk.  We work with professional Financial Advisors, Mortgage brokers and Conveyancers to ensure a seamless end to end investment process for you.  Call us today to get your plans underway to invest for a brighter future. 02 9016 2852      

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