subject: Why Property Investing Makes Sense [print this page] You only have to look at the track record of directproperty investment over the last 30 years to realise that investing in property makes sense. It certainly makes sense to anyone looking to establish a comfortable lifestyle in retirement because with a properly managed property accumulation strategy, excellent returns can be generated in a reasonable amount of time.
Of course, there are other avenues of investment including the stock market, futures trading and dealing in the currency market, but property still remains the darling of Australian investment with many younger workers following in their parents footsteps by purchasing investment properties at the earliest opportunity.
What is not completely understood however is the need for thorough research & professional advice before embarking on a property investment strategy. It is not as easy as it may first seem and you certainly need to do your homework to make sure you avoid the pitfalls that many unwary investors have encountered over the years. Only by using the professional services of an property accumulation company can you be assured of receiving the best possible resource to make the best possible decisions.
Advice you should pursue includes taxation information, cash flow analyses, loan product information and specific property analysis that makes choosing a property that much easier.
When comparing property with other investment vehicles there are some clear advantages. Here are a few:
Stability and simplicity. Compared with the complexities & volatility of the stock market, futures trading and dealing in currencies, investing in property is relatively straightforward. Although you still need specialist professional advice once you have set up an appropriate strategy you rest with the peace of mind that comes with a stable investment over a long-term.
Safe environment. We all know that the stock market can offer spectacular returns for savvy investors, but we are also aware of the horror stories that attached to spectacular losses that can occur in the blink of an eye. Property on the other hand has always had the element of stability that the stock market does not share and to this reason many professional investors always include an element of property in their portfolio.
Other People's money. One of the major principles of wealth creation is to use other people's money, and the property market is probably the easiest method to take advantage of this. Banks have built the major part of their business around home lending and it is a relatively simple matter to obtain a bank loan to buy an investment property. The fact that banks lend far more for property investing than share investing tells you a lot.
Less emotional. No one can deny the heady experiences that trading in the sharemarket brings with it, but there are also the headaches and dizzy experiences brought about when spectacular falls occur. Once the property portfolio has been established there is little emotion to be had apart from waiting for values to rise and compounding your return on investment.
All in all, property investment is a sound strategy for establishing a path to wealth in retirement as well as leaving something for your family for their future.
Why Property Investing Makes Sense
By: Sam Khalil
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