Investors
With the stock market experiencing such turbulence, it is understandable that, now more than ever, investors are seeking safe and secure investment opportunities for their money.
Property investment has long been recognised as the most secure and one of the most lucrative investment options. Property offers the advantages of being tangible, likely to accrue in value and comparatively low in risk. However, it is always important for property investment advice to be sought regarding an individuals unique financial situation and evaluation of the options available to them.
Compulsory superannuation in Australia is designed so that Australians of retirement age have access to some income when they are no longer in the workforce. Many Australians are realising though, that they need greater financial security for retirement and the purchase of one investment property can help to achieve this end.
So, how can a person work towards financial security through buying an investment property?
First and foremost, an individual needs to think of the future. No matter whether a person is struggling financially or doing very well, thinking about their future financial situation is important ad necessary if prudent decisions are to be made.
It may sound incredibly obvious, but in order to achieve financial security, a person needs to gather assets that produce income and investing in property is one of the most strategically effective ways to enhance your financial situation. While it is common for people to like to see a positive bank balance, placing all of your funds in a bank account will not make you as much gross profit as most investment properties in Australia would.
Even when your investment property is negatively geared, it presents an opportunity to generate income from rent and enjoy particular tax benefits. In many cases, the rental income from an investment property can make a significant contribution to mortgage repayments.
When you work so hard throughout your working life, you want to make sure that your money works hard for you in the present and in the future. Accumulation of properties, including your own home and wisely chosen investment properties, frequently leads to compound interest working in your financial favour.
Of course, property investment needs to be done from an informed point of view. There is no point rushing into the purchase of properties when research has not been done to ascertain their appeal to potential tenants, the extent to which the location is sought after, any strata and rental terms and the likelihood of capital growth. Similarly, an aspiring property investor also needs to ensure that they are fully informed of the financial commitment they will be required to make, including: mortgage repayments, fees and charges, insurance and maintenance costs.
In order to make a sound property investment decision, it is crucial that credible financial and property investment advice be sought. An astute financial advisor can give you an unbiased, analytical appraisal of your financial situation and recommend different options available.
As people recognise the importance of thinking about their future financial security, property investment continues to be acknowledged as the most safe, secure and lucrative of different investment possibilities. By ensuring that the decisions that you make are informed by evidence and research, as well as professional advice, you are best positioned to enjoy the financial benefits that are possible through investments in property.
Information courtesy of G Developments gdevelopments.com.au
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