When you’re looking for a way to invest your money, property is a great way to go. It’s perfect for those who are new to the investment game because the barrier of entry is low, and you can leverage the money of others in order to make a return on your investment.
Australia is a great place to go shopping for real estate investments. Here are some advantages you can enjoy.
Lots of options
It’s always nice to invest in property in areas where there are plenty of options. Australia is filled with house and land packages for first-home buyers in Brisbane and other areas. There are a lot of open spaces outside of the cities as well, giving you plenty of options to choose from.
Most importantly, real estate investing is a great option because there are many different ways to invest. You can buy properties to rent out to tenants. This will pay for your mortgage with some leftover. There are also options to fix and flip, buy and sell wholesale, or purchase a vacation home.
The many different options provide many different revenue streams. Along with that, you’ll earn capital gains, which occur when your property accrues more value the longer you own it. When it comes time to sell again, you’ll make a lot of money on the property, simply because you held onto it.
Leverage is easily the best part about investing in real estate. Essentially, this means that you don’t have to put forward all of the money on your own. You can leverage that of others with just a fraction of the investment coming from your own savings. Since very few first-time investors don’t have a huge nest egg saved away somewhere, this leverage is invaluable for getting started.
Usually, you’ll leverage the money of banks. You might solicit the funds through a conventional mortgage lender. They’ll put up between 80 and 95 percent of the funds for your purchase, so you only have to put down a fraction.
If a conventional mortgage is not an option, there are partnerships, federal programs, co-operative lending options, and crowdfunding options to get started. Check out all the lending options for real estate investors in Australia, and compare them with your situation to see which funding is best.
Investing your money is always done with a certain amount of risk. However, real estate is slightly less risky than other forms of investing. This is especially true when compared with the stock market. The stock market fluctuates constantly, and if the economy suddenly takes a downturn, you’ll lose a lot of money as a result.
Real estate, on the other hand, doesn’t rise and fall as drastically as the market does. There are natural economic shifts, but not all markets will be affected. Additionally, your losses will be significantly less because you have less to lose.
The disadvantage is that your investment is not liquid like it would be in shares or banks. You can’t pull it out at any time and use it for whatever immediate need you have. However, this non-liquidity is exactly what makes it stable. As long as you’re aware that you’ll have to wait to get your cash and have adequate savings to hold you over, it’s an excellent investment for you.
Australia’s real estate market is booming. You’re destined to find a good property and turn it into a cash flow in whatever way you see fit. Meanwhile, you’ll become an expert of sorts in real estate so you can continually make investments for your financial gain.