Whether you’ve owned a home for a while or have recently purchased your first living space, you’d know the significance of protecting your assets. This measure has become increasingly crucial today, where the prices of goods and services are at an all-time high, and your money’s purchasing power decreases. It’s also become essential due to the rising cases of theft.
Besides finding quality security systems and planning, you can protect your property against inflation by trying real estate investment. Although it provides passive income and better security for homeowners, it entails more significant risks than other investments.
If you want to guard your assets amidst difficult times, this article will explain why you should try real estate investment today.
1. Ensure Stability and Security
Safety and dependability are crucial for investors as investing involves some risk. Investing in stable and reliable investments can mitigate those risks and provide financial security. Besides fostering a healthy investment ecosystem, they ensure peace of mind. Fortunately, investors can feel safe and get a dependable option by investing in real estate.
Although real estate investment comes with risks like economic changes that can lead to significant losses, owning a house can give you security due to its tangibility. You should also know that investing in bricks and mortar is safer and more stable.
2. Access Equity
Accessing equity is essential in investment as it offers the potential for high returns, diversification benefits, and liquidity. It also allows investors to access their funds more quickly if they need to liquidate their investments. And the best way they can achieve this is to consider real estate investing.
Besides letting property owners access equity, this endeavour enables individuals to borrow money based on the value of their properties, which they can use to cover additional expenses like purchasing another building or starting a share portfolio. It can also be an effective method for generating passive income from investments if you execute it correctly.
3. Avail Tax Deductions
Everyone wants to save money, especially today when the inflation rates are at an all-time high. Besides security systems, one way to do this is to consider getting tax deductions, and you can enjoy that benefit by investing in property.
Real estate investing can be advantageous for owners and potential buyers. Paying income taxes may also enable individuals to claim a tax deduction on the interest they’ve paid for their mortgage, repairs, and maintenance.
4. It’s Less Volatile than Shares
Unlike shares with fluctuating value, real estate investment is popular due to its stability. Share market investment carries a higher risk of losing money during a market crash. On the other hand, properties are less likely to lose value as long as there are interested buyers. Although houses have historically shown better growth potential than other investments, remember that the housing market can still experience a correction.
5. Enjoy Growth Potential for Property
You must select properties with excellent growth potential when investing in real estate. It means finding houses that people are more likely to purchase. Once a buyer buys a property (usually with a mortgage), its value can increase as the new resident will care for and improve it.
When the real estate market is strong, you can sell these properties to get more money later on. That way, you can generate passive income and build wealth if demand and growth cause prices to increase.
Real estate investing lets you generate money passively and get stability, but you must do it correctly to enjoy these benefits. You can become a successful investor by educating yourself about the property market and understanding the risks.
If you need help with real estate investing in Australia, visit the PropTech Pioneer! We provide residential investors with expert guidance to help them save money and achieve financial freedom. Contact us now!