Why Invest in Property!

We have been sharing a strong message for some time regarding an exceptionally high demand for property and a drastic short supply … and how this gap continues to widen!

We were talking about 120 000 dwellings too few throughout Australia, with this figure now being reported at 200 000 nationwide!

The most basic principle of economics is one of Supply vs Demand determines the value of the product

In the case of property, the unusually high demand strengthens the value of property especially against the drastic under supply

It also affects the Rental Yields investment property owners are achieving; especially since there are now too few rental properties on the market

Would you not agree that never before in our lifetime has such a strong opportunity presented itself to those whose eyes are open to establishing and growing their wealth. The fundamentals are all aligned and so what if property does not appreciate as it has over the last 2 years (a very very unusual 2 years we might add). Property is a medium to long term investment vehicle and should be treated as such

80% of the population want to live within 8 – 10km of the CDB because we are so short of time & we don’t want to spend hours commuting! What this means to you is that owning Investment Property situated in inner suburbs will allow you to gain capital appreciation and stronger rental yields

Those that want to live closer to the city and cannot afford to buy within these areas are extremely happy to pay you rent for the privilege!

Do you know that if you are on a taxable income of around $80k per anum and you only invest a 10% deposit into a new property valued at around $550k;  at 7.5% interest only and around 4.5% rental yield … you will only be negatively gearing your Investment to the tune of approximately $10k per anum!     “Is that all!?” you are asking?

Meaning for $10k per anum you have leveraged yourself into an investment worth over half a million dollars … will this help you achieve some of your Investment Goals?

(* figures presented are estimates for demonstration purposes only; ask us how the above will be applicable to your particular circumstances)

Have a look at these 2 recent articles that are shouting a clear and loud message & which have opened many potential investors eyes wide to the Opportunity that is now!

Critical Shortage of Rental Properties

City’s Population Explosion – The Age 01.04.2011

Comments or questions are welcome.

* indicates required field

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post