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Investing in property is becoming common place and many of us are taking the plunge and purchasing a second or third property in the hope of acquiring passive income. Although there are many alternative investment strategies such as bonds, stocks and cash, however property investment seems to be viewed as the safer choice. There are a number of reasons why property investment is the popular choice for a wide range of people. Here are just a few:
1. It’s easy to get started*
The asterisk is precariously placed at the end of that title as you do need to be financially viable to invest in property. However if you are, the process is relatively simple. You have a wealth of knowledge at your fingertips so researching popular suburbs, new estates or property hot spots is easy.
2. Property investment can be tailored to suit your strategy
Whether you’re looking for long term capital growth, positive cash flow or the ability to flip a property quickly, with careful research you can find what you’re looking for. Whether you decide to build, or buy established, should be driven by your overall property strategy.
3. More control
Unlike investment in the share market, where you are likely to need assistance from a broker, property investment allows you to take control. Handling the purchase process, and mortgage application can all be done yourself. Also, in most cases, you can choose to buy and sell when it suits you.
4. Acquire passive income
If you are able to rent your investment property you allow someone else to help pay your mortgage. Overtime as you pay off your debt, the rent provides you with additional income. Some might say it’s making money while you sleep.
5. You can renovate
If you’re addicted to TV shows such as ‘The Block’ and ‘House Rules’, then you may want to try your hand at renovating a property. When looking for somewhere to renovate always keep your budget in mind. Some tasks may cost more than you think, and experts may be needed, especially for tasks such as electrical and plumbing. A renovators dream can turn into a nightmare without money and knowledge behind you, however when done well they can prove very lucrative.
As with any investment, research is key. Talk to your friends and family, and talk to experts in the industry. Be passionate and make sure your finger is on the pulse so that you’re ready to snap up that next great property investment.