The Melbourne property market continues to offer investors a range of opportunities to enter the rental market. Most experts agree that property is one of the best strategies for long term investment. The benefits to property investment are many; this post outlines some of these.
The current generation of millennials are finding entering the property market more difficult than their parents did. While there are a number of reasons why this is the case – rising home prices, different priorities – it seems that for many of this generation renting is a more viable strategy than purchasing their own home. This means the rental market is strong and is likely to continue to stay that way. A rental property in the right area is likely to have good tenancy rates, making it an investment with great potential.
Owning an investment property continues to attract the benefit of negative gearing, which can be used to offset your overall tax bill. As a property investor with a tenant, you are entitled to deduct the expenses you incur through the upkeep of your property or for necessary and reasonable repairs.
Investing in property allows for a steady gain in equity as the principle balance on the mortgage is paid each fortnight or month. It also provides an asset that steadily grows ion value, providing additional equity, which can be used to add another property to the investment portfolio. Looking further into the future, an investment property can even generate an income to supplement existing retirement strategies.
Investing in real estate is a big step but has benefits to both short and long term financial security. Of course, you don’t have to go it alone. Accrue Real Estate can provide the assistance you need to make each step to owning your investment property simpler.