Real estate is much more than just finding a place to call home. Property investment is a relatively simple and effective way to grow your personal wealth. It entails purchasing a property and renting it to a tenant to cover the mortgage and other expenses. Once the mortgage has been paid off, the rent becomes another stream of income. As the property value increases during the tenure of your ownership, you will also grow your net worth.
Investing in a property can be an excellent way to grow your wealth securely. Investing in property offers many benefits:
Purchasing an investment property is a sound investment that can help you grow your wealth. An investment property can facilitate financial growth in two ways: capital growth and rental yields. First of all, if you make an intelligent purchase, your investment property will likely increase in value. Property tends to be much less volatile than other types of shares or investments, meaning your initial investment and future capital growth potential are more secure. Secondly, renting out your property to tenants can generate an additional stream of income.
Investment properties can be leveraged, which means they can be purchased using borrowed money. Leverage is an excellent way to accelerate your investment return, as the more your property grows in value, the more money you will make off the investment.
When you opt to invest in a property you can insure your property against the vast majority of risks, including fire, flood, damage, etc. The real estate market tends to be much more forgiving than other investment opportunities. For example, even if you purchase the worst property in the area, your investment will still likely grow over time.
There are tax benefits to investing in an investment property. For example, if your investment property is negatively geared (meaning that your income from the investment is less than your expenses), you could be eligible for a tax benefit.
The first step to making a sound investment is taking the time to find and purchase the right investment property.
If you have decided that an investment property could be the right way to increase your personal wealth, Wellington & Barber Real Estate is here to help. A boutique real estate agency with offices in South Perth and Canning Vale, our real estate experts have a sound understanding and knowledge of the greater Perth metropolitan area. We have the experience and expertise to find the perfect property to help you meet your financial goals.
And if you’re looking to sell an investment property, the experts at Wellington & Barber Real Estate can help. As a real estate company at the forefront of real estate investment, we have the resources to connect you with active buyers. For more information, get in touch with us today.