Is property investment a smart move today?

Property buying is still a great way to make long-term investments, even though the market is currently unstable due to high property prices, rising interest rates, and inflation. Real estate owners shouldn't just wait for prices or interest rates to go down. This is something they should always keep in mind. Right now, there are chances to put your money into real estate! History is pretty honest, and the numbers show that you may have to wait a long time for something that won't really change how good it is to spend right now. In fact, the interest rates on mortgages now are still lower than the average rates we've seen in Australia over the last 35 years.

In the 1970s, interest rates reached very high levels that had never been seen before. Many people put off investing because they thought prices would go down. During the next twenty years, home prices went up by more than 400%. It took another twenty years to finish the job. This is a long-term investment, and how long you stay in the market has a big impact on how much money you make. It's not about how much you pay for the loan or how much interest you pay each month. Then, you should be looking for what's so great about investing in real estate. Because of these four main points:

1. Property prices tend to go up

In Australia, the real estate market has seen its value double roughly every seven to ten years over the last eighty years. While it may vary from one spot to another, they certainly see a rise in it. Property values have consistently climbed the ladder over time, making it a tempting option for those looking to invest for the long term. 

2. Demand and Supply

Australia exhibits a persistent demand for housing due to reasons including population growth, urbanisation, immigration, and limited land availability for property development. The recent setbacks in the construction business have diminished our ability to build homes and other residences. This will just increase the demand side of the market while the supply side diminishes. 

3. Control and Tangibility

Unlike stocks and bonds, real estate has a tangible element that can be seen and touched.

4. Beneficial Tax Treatment

Negative gearing is a tax strategy that allows Australian investors to reduce their investment amounts and, thus, their taxable income. As a goals-based buyer’s agent, Propwealth zeroes in on each client's unique situation to determine the optimal course of action that meets their specific requirements. You can arrange a no-obligation, complimentary initial consultation with one of Propwealth's senior consultants at your convenience. During this session, you will have the opportunity to assess where you are now and learn more about the resources available to you to help you reach your long-term objectives. You can book a free consultation call with us today to ensure you understand how to choose your investment plan best.