As someone who has spent much of their life in real estate, and as part of the Century 21 network, it is difficult for me to argue against investing in property. The great Australian dream is to own your own home, and it's been ingrained in the mass psyche of our country that owning property is something to strive for and be proud of. I don't disagree.
Today, three out of four properties are purchased by owner-occupiers, which demonstrates this dream is alive and well, but then there are those people who seek to buy property purely to make money, and while this is fine, and can provide a healthy return, it's a very different process to seeking out your family home.
Property can offer many good reasons for investment, such as capital growth, rental income, tax benefits, and a greater level of control with lower volatility than other investment options, but you need to be sure of what you're hoping to achieve from investing in property before you start.
That may sound simple, and many people respond with a reason as simple as 'I want to make money!' but realistically you need to be more specific than that. Are you hoping to retire with more wealth, or retire earlier? Or are you seeking to invest as an alternative to your current job, or as a supplement to your current income? You really need to work out what your goal is, as it will dictate what type of property strategy you should consider – for example, if you should renovate, buy, develop or hold on to what you have.
Achieving any property goal also requires you to purchase the right type of property in the right location. Markets grow differently, and you can't assume that simply because you're investing in a property that it's guaranteed to make you money. Most people expect that the underlying value of a property will increase, and generally this is the case, but you need to be in the right location to maximise capital growth, and you also have to be prepared to dedicate the necessary time to make this happen.
Like any investment, there are probably going to be ups and downs when it comes to your real estate investment, but property can often pay off and be less volatile than the share market. At the end of the day, everyone needs a place to live and for this reason property, especially well-located property, will always be in demand.
And always remember to talk to an expert when it comes to purchasing property! Your first stop should be your local Century 21 agent who can advise you in regards to the neighbourhood you are considering.