10 reasons why real estate is the best place to invest your money

1.   Cash flow

Renting the investment home out creates steady, positive cash flow, and while at times it might not be much, it is constant and can be relied upon. Buying an investment property is a great way to start gaining some passive income.

2.   Value appreciation

Historically, real estate investments have provided excellent appreciation in value, which often exceeds other investment types. Once you decide to sell the investment property, you will likely make a large profit off your original purchase price. Pair this with the income earnt over the years from rent, and you have made a very smart financial move.

3.    It’s safe

Despite war, crises, and recessions, Australian housing prices have continued to rise. When you compare investing in shares with investing in property, the risks associated with the latter are much lower. When done properly and in a smart way, you are almost guaranteed to make money.

4.    It’s easier than you think

You don’t need to be a specialist to invest in property, anyone with a bit of extra income can do it. As long as you have your finances sorted out, you can begin looking into investing in a property. If you research thoroughly and well, it is unlikely you will pick a bad property. It’s also easier to research than stocks and shares; you can research houses online from the comfort of your own home!

5.    You have control

If you invest in a share market, you usually need to hire a broker to handle your trades for you. But with a property, once everything is set up, you have complete control. You have the power when it comes to adding asset worth, and choosing who you choose as a tenant of the home.

6.    There will always be demand

Housing is a basic need, and people are always going to need it. And with the growing population, demand is higher than ever before. You are not investing in something that will go out of fashion after a while, demand for housing will always be prominent.

7.    Others have done it and succeeded

Property investment has long been a major source of wealth for Australia’s multimillionaires. There’s no harm in looking at what other successful people have done and applying it to your own life.

8.   It is forgiving

Even if you bought a house in a bad area, at a bad time, chances are the value of the house will still increase over the next few years, so don’t rush to sell if it doesn’t increase immediately.

9.   You can use it

If after time you decide you don’t want to sell the house and you no longer want to rent it to tenants, you can live in it yourself. You can move in and out of the house as you please, because it is yours.

10. You can pass it on to your kids

If you think about your kids when you think long-term, you can pass your property onto your kids when you pass away, setting them up for great financial benefit and security.

This blog post is the intellectual property of Peter Taliangis of Professionals Fremantle and is being used on this site solely as a representation of my work.