1. It’s a more stable investment
When you invest in property, you can expect that your return on investment will be more predictable than that it would be if you invested in the share market. Sydney property investment is one of the most stable investments you could explore. People always need houses, and it’s an asset that is more likely to appreciate in value as regions experience growth over the years – just make sure you research your suburbs carefully when deciding on a location.
2. An investment for every budget
Despite the common belief that Sydney’s housing market has become saturated with demand and is increasingly unaffordable, what investors would be interested to know is that there is still a lot to gain from more affordable suburbs. Suburbs in Sydney, that are a little further away from the CBD, have a lot to offer for investors when getting your foot in the door.
3. It’s an asset you can use
An investment property is an asset that you can make practical use of. It’s a very tangible asset. If you change your mind and decide that you’d like to move into your investment property, you can. If you decide to use it as an investment again later on, you can do that too. Other investments don’t offer the same level of flexibility, but with a Sydney property investment it’s part of the package.
4. Other people pay for your investment
Having an investment property means that you can rent it out and have that income go directly towards paying off your investment. This is a reliable, regular payment that offers the stability and frequency that you wouldn’t get with most other investments. When you rent out your investment property, you can enjoy the peace of mind that your investment is paying itself off.
5. Leverage
You can use an investment property to gain access to leverage. This is an investment strategy where you use debt to bring in greater returns and ultimately pay off that debt. By using your property as security means you can borrow more money than you would with using a share portfolio because lenders will let you borrow up to 90-95% the property’s value, but typically 50-60% of a share portfolio’s value. In addition to this, this allows you to benefit from the growth of a larger asset because you have significantly greater borrowing power.
See how we can help you with your Sydney property investment today.