5 benefits of long-term property investing

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While we may live in a fast-paced world the great advantage of investing in property, is that it’s long term. This means you have time to think before making a decision!

Yes, property does move in cycles, but if you’re prepared to wait, here are some reasons why many choose property for a long-term investment:

Less stress

Generally, property investment is a lower risk than other forms of investment, so there’s no constantly keeping an eye on the stock exchange, or worrying whether there’s going to be a crash or change in the political environment.

Once you’ve done your homework and spoken to specialists (as you should with any investment opportunity), bought the right property, in the right location for the right price, and you’ve got it tenanted and managed, many investors just sit back and let the property management agent do the rest. In the meantime, they enjoy a regular income and benefit from tax incentives.

Increase rental returns

The great thing about property investment is you can legally raise the rent when appropriate, giving you a higher income and helping with cash flow. Of course, sometimes property owners don’t raise the rent for tax or other reasons, but it’s nice to know you’ve got the option there if you want it.

Leveraging your investment

Over time, your property value will usually increase. This gives you opportunities later down the track for refinancing or borrowing against it for other reasons.

Capital return

Most property investors can choose when they want to sell; they are not being dictated to by a volatile stock market. If you have a long-term strategy, and your property is well positioned, the chances are you’ll get a higher than average capital growth.

Gives you choice

Long-term investment gives you choice. You can benefit from income from your property or gear it so you can take advantage of the tax deductions to offset tax in other areas. And it may be possible to change the way it’s geared later down the track if your financial situation changes.

If you’d like to know more about investing in property, our talented team would love to share its knowledge with you. We can give you lots of ideas to consider, but we always advise you to talk to a financial specialist who can advise on your exact situation.

Having been in business in the area for over 40 years, we are one of Newcastle’s longest established real estate offices, so give us a call on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au  or pop into our Cardiff office for a chat.

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