Wealth can be built in any number of ways; property investment however remains the most popular and accessible method of accumulating and building wealth in Australia. The long term gains from property are immutable as the oceans that surround us. After food and clothing human beings require shelter. This is fundamental to our well being. We may want tulip bulbs, insurance or shares in businesses in Japan; but we do not actually need them.
The benefits are manifold:
Real estate is a long term proposition for most property investors. For sure there are opportunities for renovating for a profit, but for most investors the traditional route to wealth building in property is to buy well (the right property at the right price) and hold for long term capital appreciation in what we call a ‘buy and hold’ strategy.
The security of property lies in a number of factors including:
The role of an property investor is to be a long term investor; you need to
be sure that the opportunity is the right one for you to be invested in. This
where a reliable service provider can be invaluable.
Buy and hold strategies can be particularly powerful when they are held through a full property cycle. Often values can double or more through a cycle, validating the buy and hold approach.
With a buy/hold strategy you are searching for suburbs that have out-performed relative to the overall market in the longer term.
Past performances are often the best indicator for future performance and this is where data and the availability of experts can be so invaluable.
Benefits of owning property can be maximised where property is located in areas that have:
This is where an investor can gain traction and a genuine ‘competitive advantage’: they can get to understand the nuances of a particular market and intuitively will understand value. You can become an expert on your territory!