Property – Investment Strategy

Property is typically considered a safe investment.

What is property investment?

An investment property is a piece of real estate purchased with the goal of generating a profit through rental income, future sales of the property, or both. An individual investor, a group of investors, or a business may own the property.

A long-term or short-term investment can be made in an investment property. With the latter, investors frequently participate in flipping, which is purchasing real estate, remodelling or renovating it, and then selling it for a profit in a short period of time.

Key Features

Benefits of property investment

Property is typically considered a safe investment because the property market tends to be less volatile than investing in stock and shares.

With the right investment strategy advice, property has the potential for capital growth, which refers to the value of a property increasing over time. Pair this with the steady income that a rented investment property can provide, and the tax benefits associated with different loan types, and this makes property investment a possible way of building your wealth and securing your retirement.

Downside of property investment

Property investment is not all rainbows and lollipops, there are some cons associated with investing in property 

  • Hidden problems – make sure you get a building and pest inspection, ensure your property is kept to the highest standards, and scrutinise the rental application.
  • It is not liquid – Shares you can sell at a moments notice, property takes longer to sell. 
  • Property has a high entry cost – It’s going to cost you thousands and thousands of dollars just to get into the market.  
  • Mortgage payments – Sudden changes like rental vacancies or rising interest rates can put a strain on your cash flow. If you are relying on the $400 per week that comes in from your tenant and all of a sudden they move out, you still need to be able to continue making your mortgage payments.
Investment Strategy

How do I invest in property? 

If you need help choosing the right investments, get financial advice. A moneylab financial planner will help you set your financial goals, understand your risk tolerance and find the right investments for you. They are the experts in finding the best type of investment to suit you and your needs.  
 
At moneylab we also have a dedicated team of mortgage brokers who will be able to assist in the process too! Whether you are a first-time home buyer, a seasoned investor or a business owner in search of commercial property our team of brokers will find you the right solution. 
 
If you have an investment idea or are looking to boost your wealth, contact us, and we’ll develop the most effective investment plan catered to you. 

Caution!

Investing without knowledge and understanding is just speculation and relies on luck. We recommend speaking to a professional about your financial goals and needs to ensure you make educated and composed decisions. Contact us today to speak to a financial advisor, who will help bolster your investment strategy and returns. 

Speak to us about your investment opportunities

Call moneylab and one of our finance experts will be able to assist you immediately.
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