There are numerous reasons why you should invest money into property but the fact that residential property continues to increase in value is probably the reason that is the most appealing to investors. (The percentage to how much it’s value increases or has increased largely depends on its location and therefore it’s extremely important to do your due diligence to choose the correct location when first purchasing the property – click here)
As Safe As Houses
Bricks and mortar have always been a popular way to invest. The saying ‘as safe as houses’ has always meant something is an extremely safe option with no risk involved and this saying has always been associated with buying property. As opposed to investing in shares, when investing in property you can actually see and touch your investment which may mean to you that you feel you have more control over your investment. Also your investment can be insured – so that if it was to burn down in a fire it can be replaced thru insurance.
Purchasing a Property isn’t Difficult
Investing in property is a relatively easy process once you have your funds/finances in place. Yes saving the dreaded deposit isn’t easy but once you’ve got that it can be all systems go. Whilst there is a fair bit of paperwork to do this can and should be arranged by your Solicitor. Therefore investing in property is something everyone can achieve if they have the funds to do so. Unlike shares where you have to navigate the stock exchange or pay someone you trust to do so on your behalf.
You Have Control
Investing your money into property can be a secure investment as you have full control over the investment. You can choose what direction to take the investment. I.e. you can renovate to increase its value or sell whenever you wish.
Increase Your Tax Deductions
Investing your money into property can help put money into your pocket at tax time. Many costs associated with the purchase of investment properties and holding it can be tax deductable. This can increase your cash flow by reducing the total tax you pay her year. (Finding a good, knowledgeable Accountant is a must to legally cut your tax payable with tax deductions associated with investment properties.)
Positive Rental Yield = Someone Else Pays Your Mortgage!
Invest your money into an investment property and have someone else pay the mortgage. Again, by buying the correct property in the right location the tenant’s rent can cover the cost of your mortgage. Essentially costing you nothing if the yield is high enough especially with interest rates at an all-time low.
The beauty of property as it rises in value is you can then use the equity in that property to leverage acquiring another property. Meaning, if you have enough equity in the first property you won’t need to save the deposit for the 2nd property. Do this a few times and your property portfolio increases.
There are many reasons why investing money into property is the best decision for your investment portfolio. Generally investing in property isn’t a get rich quick investment. But overtime it can really pay off and set you up for your future.
If you have any questions or comments on why invest money into property please comment below. I’d also like to hear the main reasons others choose property to help feather their nest egg.