Residential real estate has long been a popular investment choice because it offers both stability and high profits. According to the Australian Taxation Office, there are more than 2.2 million property investors in Australia, which suggests that almost 20% of families own at least one investment property.
Investment properties offer a diverse range of advantages that can be used to achieve a variety of objectives. In today's blog, we'll go through some compelling reasons why property is the most popular investment option for most Australians.
The real estate market goes through cycles and has its own ups and downs, but property values normally rise over time. Historical evidence reveals that as time passes, real estate grows increasingly expensive. In Australia, the housing market has changed dramatically over the previous 25 years, with median house values increasing by more than 400%. According to REIV, the median price of a house in Melbourne has increased by almost 23 times in the last 43 years, from $37,088 to around $893,000 in March 2020.
The Australian government offers a variety of tax benefits to stimulate property investment. Interest on loans, depreciation, and other property-related charges can all be claimed to lower your tax bill and increase your return.
Real estate is a tangible asset that has historically been less volatile than other investments like stocks and cryptocurrencies. Large financial organisations, such as banks, see real estate as a safe asset class and are willing to lend money to anyone who want to invest in it.
Even homes that aren't well-chosen tend to appreciate in value over time as demand and population increase. It is rare to find a cheaper property today than it was 20 years ago, regardless of location.
It is estimated to be valued $8.1 trillion (as of May 21). The value of real estate is protected by state and federal governments developing infrastructure and enacting policies to guarantee that all Australians have a roof over their heads.
Once rented, properties can provide a steady stream of revenue. If you're a landlord, your rental property is open 24 hours a day, seven days a week. You can use passive income to cover all or part of your ownership costs and mortgage payments.
Money in a savings account loses value when interest rates are low and inflation is high. Lower rates, on the other hand, boost house buyer and investor activity, which raises property demand and, as a result, raises property values. Money saved tends to degrade, whereas money invested in real estate tends to expand.
You do not need to be wealthy or have a large sum of money to invest in real estate. The average Australian is the largest group of people that invest in real estate. According to the Australian Taxation Office, over 64% of property investors earn less than $80,000 per year in taxable income.
DC Properties
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4 Columbia Ct, Norwest
NSW 2153, Australia
Phone: 02 8860 9690
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