There are stages in life when people start to look at building wealth:
- you climb the corporate ladder,
- your own business continues to do well,
- you’ve built equity in the home you own,
- or you may have just come into money through an inheritance.
In Australia, property investing has always been a popular way to build wealth for many reasons. People understand how it works, you can see it… and everyone talks about it!
Most of my clients tell me that at these life stages, it’s a good time for them to review (or sometimes, start to set for the first time) their financial goals. And while financial goals can be so varied depending on the person’s individual situation, property is a good option.
So why would you choose property as an investment over investing in other assets?
What I do every day is show clients how property investing can build wealth to help reach financial goals.
Research conducted by CoreLogic and Aussie has found that “since 1993 median house and unit values have increased by 412% and 316% respectively. The capital gain over the past 25 years equates to an annual growth rate of 6.8% for houses and 5.9% for units.”
While past performance is certainly not indicative of future performance, I always say there are a number of fundamentals to help guide your property investing decision:
- Set your goals
- Research the property
- Research the location
- Research the population growth
- Research the employment opportunities and
- Research the infrastructure spend in the area you plan to buy
With this in mind, one strategy that is gaining popularity to enable people to invest in property is to use the equity in their home for a deposit, and then purchase a property in a location with high rental demand and in an area forecast for capital growth.
By owning an investment property as well as your home, you could have two bites of the cherry.
It is vital to seek advice about this strategy from a financial advisor and this could unlock the ability to purchase the next property.
Good properties in great locations are moving fast. If you want to take advantage of the market right now, please arrange a time to meet with me so we can create a brief together and I can start your property search.
Book a time to meet by following this link