Information supplied by Quest Properties
Benefits of property investing over other kinds of investments
If you’re somewhat new to the world of investing, you may be researching a few different options and thinking about what kinds of investing might be the most financially viable and successful for you in the long term. And we stress: long term. Aiming for “quick return” investments isn’t the best way to secure your financial future in the long run, no matter which avenue you decide to take.
But when it comes to a decision between property investing and other options, such as investing in the stock market or in start up businesses, there’s mounting evidence to suggest that property investors are coming out on top. Recent statistics have even found that over 50% of buyers aged 18 to 34 plan to make their first big property purchase in an investment property rather than a home to live in. So, in light of the growing popularity in property investing in Australia, we’ve taken a look at some distinct benefits that it has over other types of investing.
Fewer market fluctuations
Any type of market worth investing in needs to have price fluctuations. After all, it’s how the investor makes (and/or loses) money. However, changes in property prices often tend to be slower, steadier and more predictable than stock market prices. In addition, housing prices tend to fluctuate based on actual market factors such as availability, demand, and building costs, rather than market ‘sentiments’, as is the case with stock markets, so it’s a lot easier to keep your finger on the pulse in terms of whether property prices are set to rise or fall in the coming months and years.
It’s easier to get a loan from the bank to invest in property
Obtaining a bank loan to invest in property is usually fairly straightforward for most people, provided you have a good credit rating and previous track record in paying back loans and credit cards on time. Investing in the stock market, on the other hand, either means that you need all the money you wish to invest upfront, or you need to rely on taking out a personal loan. Personal loans normally have higher interest rates than property loans, as there’s less security involved for the bank than with a property loan (who will take the property itself as collateral should the client not be able to continue making their loan repayments.) However, so long as you choose a secure investment, the risk of losing the property itself is minimal, and a number of loan repayment calculators to help you figure out just how much you need to be earning every month to stay in the clear.
Property investing can be a domino success effect
Investing in property can really pay off for smart investors once they get a flow-on effect happening, and start building their own Holy Grail of real estate: the “property portfolio”. The better your properties are doing, the more income you’ll be making, and the more you can potentially invest in additional successful properties.
Almost anyone can learn to invest in property
As anyone who’s ever started researching the stock market can attest – it can often take months or years to get your head around all of the lingo and the factors that affect price fluctuations in markets. Hiring a stockbroker is one way around having to learn all of the technical aspects yourself. However, paying management fees for someone to handle your investing for you can dilute your returns in the long run.
Property investing, on the other hand, is a field in which almost anyone can become knowledgeable. It will still take plenty of good research and reading, and keeping an eye on the news for the latest market trends, but it can be easier to get your head around all of the concepts. Especially if you choose to invest in a property that’s managed for you, which will often give you access to a dedicated Investment Relations Advisor, who can assist you with any investment questions relating to your property.
There are plenty of already-established, successful property brands you can get started with
One of the drawbacks often cited with investing in property is the fact that you have to manage the property yourself. Things like finding and screening potential tenants, carrying out building repairs and renovations, and being responsible for collecting rent payments or calculating appropriate rental increases every year are just some of the hassles associate with owning an investment property. However, there are a number of well-established property brands that can take care of all of this for you if you choose to buy a property with them. Quest Properties is one such brand which has seen a large number of property investor success stories, year after year over the past 25 years that they’ve been in operation. With a fixed rental income of 6.5%+, zero vacancies, and all the management taken care of for you, it can be the perfect “hands-free” investment for those looking to secure their financial future with minimal stress and hassle.
For more information about how property investing can be a great financial choice, contact Quest Properties today >>
Disclaimer: while due care is taken, the viewpoints expressed by contributors and/or sponsors do not necessarily reflect the opinions of Your Investment Property.
Can you afford to buy in this suburb? Find out how much you can borrow