In this article we discover that building wealth through property investment is easier and safer than you think. Even during Covid-19 and a global pandemic.
Everybody wants to build wealth. The problem is there are so many ways to do it ad so many voices telling us their way is the ‘best’ or ‘safest’.
How do you know which one is best? Is it property investing? Buying shares? Bonds and term deposits? Investing in businesses? Bitcoin and cryptocurrencies? Forex? Or one of the other multitude of ways you can invest your money?
No-one can really say which is best for you without assessing your circumstances and financial goals. However, it is evident and proven that property investing has been extremely lucrative and rewarding for many Australian’s who have made wise, and sometimes lucky decisions. The reality for most Aussie’s is, property is the one asset they feel the most comfortable in dealing with in terms of wealth creation. Chances are average mums and dads have had a crack at buying their own home, so when it comes to investing, are comfortable executing that investment style, given their experience with the family home.
Property is superior to other assets and investments because you have many additional factors working in your favour. The right property can provide you with high rental yields of 5%+ while also achieving capital growth of up to 10-20% or MORE in a single year. That may sound small compared with the returns of stocks, business start-ups and cryptocurrencies. But those investments can be incredibly risky and volatile.
It’s not uncommon for the stock market to crash or a company you’ve invested in to go bankrupt overnight. Many people that got caught up in the cryptocurrency hype have lost everything they invested can attest to this volatility.
I don’t know about your risk appetite, but investing in something that risky, just isn’t for every day mum and dads, especially because when they have a family to think about.
You’re naive in this covid-19 pandemic market, also to put my money in term deposits or bonds. These once ‘safe-havens’ are now lucky to even break even after you adjust for inflation and remove fees.
That’s why most are looking to property as the sweet spot. It is much more reliable and less volatile than stocks, forex and crypto. Think about it…when was the last time you saw the property market lose 60-70% or more in value in less than a month? You don’t.
The ‘real estate crash’ that happened recently was one of the worst price slumps in the last 40 years. Yet, it was little more than a correction of around 15% across our two big capital cities that had just come off a boom, and most of those losses have now recovered as the market pushes forward once again.
In addition to the stability of real estate, you also have extra tools like financial leverage, generous tax advantages, depreciation schedules, and the ability to create your own capital growth within a property. The benefits just keep on piling up, which is why we’re seeing mum and dad investors look to property and why the property market has remained relatively stable during this Covid-19 disruption.
Want to find out more about how to create wealth with property investing? We have sourced this FREE property report from MakesCents.com.au to give you more information on the property market and how you can build wealth through property.