PROPERTY INVESTMENT > Why Property?

Why Property?

Safety and Certainty

These are the two elements of any good investment and residential property has these more so that any other investment.

Ask yourself: “What would I want from my investment?”

Obviously the answer would be: “It must retain its true value and generate a good income.”

So, how do you judge whether an investment is safe or not?

All banks will lend you more money against residential property that any other investment option and that includes, and even gold bullion. Some banks will loan up to 106% of the value of property as they know that property always increases inn value in the medium to long term at a rate faster than inflation. Therefore, if you are an investor (as opposed to a speculator), residential property is the only investment which we know will retain its true value. You can bank on it!!

 

Secondly, the income generated by property (rent) is safe and also increases at a rate equal to or faster than the rate of inflation.

Again, you can use the lending institutions as a yardstick. When you ask for loan for property all banks will take into account the rent that the property will generate (even if the property is not even built or if it is vacant at the time of application). On the other hand, they will not take into account share dividends as these can fluctuate enormously from year to year. This feature makes property even more attractive as it allows you to borrow more money and helps you repay your loan as rental income is consistent and reliable. It will cost you less from payday to payday to repay you loan for property than a loan for any other purpose.

Finally, it you want to minimise your tax (and receive you deductions each payday) property is the most tax effective investment of all. Under the Davison 15 of our Taxation Legislation, you can claim your investment costs with property on the run. This increases your take home pay significantly thus allowing you to pay your loan by using our Tax Laws as a wealth building tool rather than a black hole in the various Federal and State Treasuries.

Residential property is the cheapest to fund and safest investment of all.

To speak with a member of our team, please telephone 1300 30 10 10 or 03 9530 2666, or alternatively, you may wish to register your interest here.