Property - Finding The Perfect Property

Don’t Just Jump In!!!!

People invest in Real Estate for a variety of reasons, the main reason is not only for capital growth and income, but also for peace of mind for security & stability leading into retirement. The Australian Property Market has performed extremely well over the past 50 years and should continue to outperform other parts of the world.

Property throughout Australia traditionally increases substantially over a period of time, but the size of the increase varies from State to State and even area by area. Therefore it is imperative that you research the areas that are relevant to your financial needs

One of the most difficult decisions in buying Real Estate in Australia is what type of Real Estate to buy. You have many choices. Houses, townhouses, villas, units, studio apartments and the list goes on. It’s important to choose the right property that reflects the wants and needs of the people who live in certain areas. As an example, a one bedroom unit in a suburban street would not be a wise investment compared to a 4 bedroom house with a garage that would in fact suit a family with pets and Visa Versa you would not want a 4 bedroom house on the water on Bondi Beach.

The most important thing about investing your money in any investment is the stability & security of the investment, no matter how attractive the returns appear to be.

The Real Estate Market doubles approximately every 7 years in Australia and has done so for hundreds of years. But the timing of those 7 years varies from State by State and even Region by Region and therefore it is important to ensure that if you are buying at the wrong end of the cycle that allow time to watch your investment grow. A huge advantage about investing in Real Estate as compared to shares is the benefit of leverage. If you have $100,000 to invest and you are not sure whether to invest in the stock market or Real Estate, you need to take a broad view on your options. If you only have the $100,000 to invest in shares, chances are the banks will not lend you any money against those shares, especially since the Global Financial Crisis, therefore your $100,000 you invest in shares will need to be a cash investment and even on a 15% compound return per annum, those shares would be worth $266,002 after 7 years. That’s an overall gain of $166,002 on your initial investment of $100,000. However, by investing the same $100,000 into property and leveraging that $100,000 against a property of $400,000, your same investment of $100,000 over the same 7 years will be $1,064,008. That a 640% greater return over the same period of time also bearing in mind that as the rental income increases, the cost to keep the property revert to a neutral status within approximately 5 years.

Equanimity Concepts is a company that can provide advice on all aspects of investing in Real Estate as well as the financing options that suit you, the investor.