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5 Benefits Of Real Estate Investing In Australia

5 Benefits of Real Estate Investing in Australia

Real Estate investments can be a good way to make your money grow. Although real estate investments may have higher risks than others, they can generate passive incomes, which can especially useful closer to retirement. But, aside from the financial support real estate can give, how else are they beneficial for people? Here are some ideas.

1. Potential Growth of Property Market

When people start real estate investing, the property should have growth potential. Properties will have growth potential as long as people are planning to buy them. Once a property is purchased (which is usually after a mortgage is arranged) the property’s value can increase because it has a new resident who will most likely take care of it and improve it.

Also, if the real estate market is doing well, you can sell your properties to other individuals at higher prices. It can be an excellent way to build passive income and wealth if potential homebuyers have to pay escalated prices due to growth or demand.

2. Less Volatile Than Shares

Part of the reason why investment in the real estate market is popular is that it is less volatile than shares which can easily see fluctuations in value and prices. The potential for growth of houses has been higher than that of other investments. That is not to say that the existing housing boom won’t experience a correction at some point in the future.

When people invest in the share market, there is always the chance that the market will crash and cause people to lose a lot of money. However, properties are less likely to lose value in the market because homes can always be sold for a reasonable price as long as there are potential buyers.

3. Availability of Tax Deductions

Another reason investing in property may be beneficial is that it can attract tax deductions that the owners and new buyers can use. When people pay income taxes, they can claim a tax deduction for the interest they have spent on their mortgages, repairs and maintenance, etc.

4. Security and Stability

Investing in the real estate market is popular because it gives investors a sense of security and stability. When it comes to investment, there are no guarantees because the economy can change and cause a lot of capital losses in assets. However, with homes, people feel safer owning physical ‘bricks and mortar’.

5. Access to Equity

Finally, investing in properties can give property owners access to equity. It means that people can borrow money against the value of their properties and use it for additional expenses, for example, starting a share portfolio or buying another property.

If done correctly, it can be a smart way for people to use the money and create even more passive income from investment.

Ready to Start Your Journey in Real Estate Investing

Overall, investing in the real estate market can be a good way for people to build passive income in the future. Many people allocate and grow their money via property investment so that it can provide financial support to them in the future.

Sydney Wealth Advisers provides investment advice to clients needing clarity on their next financial move. We also offer retirement planning, superannuation advice, aged care advice and much more. Call your award-winning Financial Adviser in Sydney today to book your complimentary initial meeting.


DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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