There’s no denying that Australians love property. It’s something that’s deeply embedded in our psyche. In this country there are over 1.9 million people with declared rental income – that’s a lot of landlords! So, what is it about bricks and mortar that as a nation we just can’t get enough of?
Property is physical
Many love property because you can see, touch and feel it. Ownership gives you a sense of satisfaction emotionally that is very different to parking a few share certificates in a drawer. It’s this tangibility that gives many people a sense of security that is hard to shake. While it’s easy to fall in love with a location and a property, when you invest it’s also vital to know when to sell and take your gain. We have seen plenty of situations where property owners have held an asset, and then missed excellent times to off-load and take a win at the top of the market. This is where chatting to your local First National agent regularly can help. You’ll stay up to date with what the markets are doing – and we often have access to some of the best insights and local knowledge in your area in terms of recent sales.
Property says status
Being able to say “I own that” can be a big driver in property purchases. That’s because property is often associated with wealth and success, and for many it’s a great way to display that. Investing is also an excellent way to accumulate wealth, when it’s done correctly. Every investment you make should be explored on financial and growth terms, by analysing the numbers and the potential. In doing so, you’ll avoid expensive money-pits and find something that will set you on the right path.
Property can generate wealth and financial freedom
At First National we have seen many investors earning less than $80,000 per annum that have been able to buy their first investment property, which over the course of several decades, has allowed them to achieve amazing freedom. Like them, you don’t have to be a property tycoon right away. You can aim small, then step it up.
You can buy it with your Superannuation
SMSF (Self Managed Super Funds) are highly popular, as is purchasing property with your nest egg. Using your superannuation is a great way to tap into the gains to be made, but do so with your eyes open. Do your research, talk to local agents like First National and get informed on your targeted property sector, the asset itself and the area. Also, consider that superannuation is about future returns, so assess any property asset you’re adding to your fund portfolio on its long-term potential.
Tax incentives used to be a great reason to invest in property, but since the 2017 Federal Budget, many of the benefits have been eroded, but not all. Items such as claims on costs related to maintenance and upkeep of a property previously were great incentives for people to invest. The advantages in this area are no longer what they were, but as the revolving door of Australian governments continue, we may see significant changes in legislation and some good news to come.
Do note the information above is general in nature, and is not intended to be taken as investment advice. Before embarking on any investment strategy, it’s a good idea to assess research carefully, get professional advice, and consider your own financial position prior to undertaking any investment.