Property is not some exclusive or elite club, that is only reserved for a few. Literally anyone can play that game, and I would say get your skin in the game. In this article, you would get the right information to make the best property investment decisions. As it is already said that when you know better, you do better. The ownership of property has always been linked with wealth creation or building some sort of legacy. Remember the earlier you start the better you get. This is a marathon, and investing in property is a long-term venture.
The top five reasons why you should invest in property:
Investing in property is one of the safest investment you make. It’s a tangible investment. It will always be there. If you think about it the value of property really goes down. The population is forever increasing, and there will always be need for housing, and I think that’s one of the reasons that makes it such a safe investment.
- CASH FLOW AND PASSIVE INCOME FOR LIFE:
So, when I talk about cash flow or some people call it net income. This is the rental income that you receive, minus your home loan repayment, plus all the other expenses that are associated with managing or running a property, or a rental property investment. So, these expenses are things such as your levies, your rates, your taxes, insurance on the property, and any repairs or maintenance that have to be done on the property.If you buy the right investment property, your rental income should be able to cover your bond repayment, as well as the expenses that I just mentioned, and still leave you with a bit of profit. It’s literally that little bit of extra income in your pocket. I would probably advise you to take that cash flow, and use that money to make additional payments into your bond. Another important factor to remember is that in most cases your rental income will increase over time. Thus, meaning that your cash flow will also increase over time. Obviously, you want to get to a point, where your home loan, repayments are done, and you are receiving this rental income with minimal expenses.
- NOT HAVING TO SPEND ANY MONEY:
Property is one of the few investments where you don’t require money to make money. This investment vehicle does not require any money to make money. You don’t have to spend a single cent of your own money to own property, and banks are more willing to assist you with financing the purchase of a property. It’s easier for example to get a home loan, compared to a business loan, or imagine approaching the bank for a loan, because you wanted capital to invest in cryptocurrency. So, back to the point of not having to spend any money banks are willing to fund one hundred percent of the purchase price of the property, and if that is not enough, they are even willing to fund, and pay for your transfer cost, and your bond registration cost as well, and on top of that they’re even willing to give you additional money to renovate your property. This will intern increase the value of the property, thus increasing your cash flow as well.
- CONTROL OF YOUR PROPERTY:
You have total control of your property, as well as the journey in purchasing the property. You literally decide as well as financial institution that you choose to use, and once you own the property, you decide what you want to do with it. So, you can either want to rent it out, you can renovate the property, and sell it. Some people call it like flipping the property. Obviously, if you are in an estate, you might be limited by body corporate rules, but in general you can renovate the property, thus increasing the value.
- TAX BENEFITS AND DEDUCTIONS:
It’s very important, the tax benefits and deductions you get for owning an investment property. So, just like you earning income from a nine to five, when you are renting out your investment property. That is additional income that you receive, therefore it is subject to tax, but you are able to deduct the expenses and cost of running or managing the property from your rental income. If you really understand how his whole tax system works, you can literally collect rental income with out paying any tax, or at least paying minimal tax, but please always make sure that you are following the correct tax regulations in that country, and it’s very important to note that these benefits only apply to an investment property, which means this is a property that you are not renting out, and not one that you are currently living in.