What are the benefits of Property Investing?

What are the benefits of Property Investing?

What are the benefits of Property Investing?

Property investment is one of the most popular forms of investment and has the possibility to reap many long-term financial benefits for investors.

Here are three of the top reasons so many West Australians choose to invest in property.

1. It can help set you up financially

Historically, capital growth is a major benefit of property investment and with time and patience, can significantly increase your personal value. The value of your property will almost certainly grow over time. If your rental income is greater than your expenses, then your investment property can be another source of income.

2. It’s one of the safest investment options

Despite the many other investment alternatives, stocks, bonds, cash etc, investing in property is generally regarded as the safest due to its low volatility. Property also gives you an immediate return on your investment through positive cash flow, so you can start receiving income almost straight away. Because your investment is a physical asset, you can also mitigate risk by having it insured and unlike other investments, you can influence your returns.

3. There are tax benefits

Although tax benefits should not be used as a decision-making factor, it can be a benefit of investing in property. Any tax associated with the expenses paid on the investment property, such as property maintenance, council rates and property manager fees can be claimed back at the end of the financial year. Plus, if your expenses exceed your rental income, this may also provide tax benefits such as negative gearing.

These are just a few benefits to property investment, however like any business, it’s wise to explore both the pros and cons. Investing in property can be a good way to grow your assets, however it’s still important to define your investment objectives, do your research and seek professional help if you are unsure about any aspect of the investment.

If you'd like to know more about some great properties currently listed for sale with great tenants and returns get in touch with our team here.


Source REIWA

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