With so many different investment options in the modern day, you might ask ‘What is so special about property investment?’ Property investment is a fantastic way to receive optimum returns on your hard earned cash, while still taking on far lower risk than in the stock market. With a strong nationwide real estate market, now is the perfect time to get into the property game.
Despite the age-old financial adage of ‘High risk, high return’ the Australian property market continues to demonstrate that this does not always apply to real estate. Despite having far less volatility (risk) than the Australian stock market, the Australian property market continues to outperform the ASX 200 by a sizable margin. While the Australian share market (represented by the ASX 200) has averaged returns of a little over 1% per annum over the last five years, property prices have been soaring.
We understand that many Australian families have their money invested in different types of securities such as stocks, bonds and short-term cash securities. All of these investments certainly have a place in your portfolio. In fact, they are greatly complemented by investing in property. Real estate investment provides diversification benefits, which in turn lowers the risk of your overall portfolio. One of the key principles of creating an investment portfolio is to not put all your eggs in one basket. Keep your money safe while it works for you by branching out into real estate.
When investing in a house or a unit, you are also able to borrow a lot more than if you were to put the some money into other investment vehicles. Banks generally allow you to borrow at least 80% of the purchase price of a newly bought house, while you can only borrow 50% when purchasing stocks. This makes the property market very inclusive for average Australian families.
Start your real estate investment career. Contact our property consultant experts today on 07 5530 8407.