If you are trying to plan for a stronger financial future then it’s likely that you have been putting money away and investing over the past number of years. You are reading this article because you haven’t added any property to your financial portfolio as yet and so it must be something that you are genuinely thinking about doing. The fact is that the price of Australian property continues to rise year after year and it doesn’t show any sign of slowing down. This is a market that you need to be involved in so that you can create a nest egg for you when your retirement years come around.
Many Australians are also looking into buying land where they can also take advantage of the property market and they can build to rent. The rental market is huge all across Australia and there are many opportunities to charge rent that is far in excess of what you would be paying each month for a mortgage for example. It is the perfect way to put your money into something that you know is going to grow in value and it can also provide you with steady cash flow. You can then enjoy life to the full and take a number of extra vacations each year and the costs are covered by the money you make with your property
If you are still a little on the fence then maybe the following benefits of starting to grow an investment property portfolio can help you to make wise decisions.
- A healthier cash flow – As was touched on briefly before, one of the best reasons for growing any kind of investment portfolio is all of the potential to have lots of extra cash coming in. Once you get yourself onto the property ladder then you can buy the properties and this means that you have many different avenues of rental income coming your way every single month. This is passive income that will allow you to live a very comfortable life now and it will allow you to achieve your financial independence when you retire and buy those underwater fountain lights.
- It helps you to build wealth – The Australian property market only seems to be going in one direction right now and the prices of property continue to rise. You need to get in now and strike while the iron is hot so that your property will rise in value over the next 10 years and then you can cash in at that point if you want to. It is a fantastic long-term financial goal that we should all be aiming for so that we can protect our retirement years and make sure that we continue to live in the style that we are accustomed to.
- You always have somewhere to live – It is your intention to rent out your property but it is always useful to know that in the unlikely event that you need to move out of your current home, you will have somewhere to stay. You will of course have to give your current residents notice but after that point, you can move in and reside there until things change. Once things pick up, you can then rent out the property and start again where you left off.
These three benefits should be enough but then there are also the tax benefits to enjoy. You will have lots of expenses when it comes to owning and managing any property that you have and you can claim all of these deductions off your yearly tax report. In the unlikely event that your property depreciates, then this is another deduction that can help to reduce your overall Australian tax bill. There really is no downside to investing in any kind of land or property and so look into finding out more about the property market in your local area and beyond. There is so much potential out there and now all you need to do is to take advantage of it.
