Property investment offers two main potential ways to make a return: rent and selling for profit. You can earn money by letting out the property to tenants or selling it later for a higher price. It is possible to get these potential benefits by choosing the most suitable property and managing it the right way.
Resort Brokers Australia shares the appealing aspects of this type of investment.
Control Over Investments
One of the most appealing aspects of this venture is that you have control over most parts of your investment. You get to decide how much money you’re going to put in the investment and decide if the potential for capital growth is acceptable. You have the final say on how you’re going to maintain the property or whether you’ll manage it yourself or hire someone to do it for you.
As an investment property is a physical asset, you can be comfortable with the security of this brick and mortar investment. Real estate can deliver steady and tax-friendly rent returns that can grow in the long term. You will not get this kind of assurance in other types of less intangible investments such as shares or unit trusts.
Australia offers several tax benefits when investing in property. A number of key tax benefits can be helpful in offsetting the cost of managing a property while pursuing a ‘buy and hold’ growth strategy. Negative gearing is the main tax benefit that investors are familiar with. This allows you to reduce the overall taxable income by claiming the difference between income and costs as a deduction.
While properties generally offer a combination of both income and capital growth, some are more appropriate for one or the other. This is why it is important to know from the start your goals for the investment. You should also keep in mind that it is a long-term investment and may require a sizeable initial cost.