Why Investing in Property is Not Only for the Rich
When you hear the words property and investment, many of us associate them with being financially stable or actually, with someone who is extremely wealthy. We often think that it’s suited for the privileged and capable. But actually, this cannot be further from the truth. Investing in property doesn’t mean that it’s limited to certain types of people, rather it’s for those who are willing to actually consider it. Investing in property is much easier now because of all the options.
There are different kinds of investments for different kinds of investors. Let’s take a look at some of these options if you are thinking of getting into it.
I have mentioned many times about increasing house prices and how it has affected so many Australians. Although it is actually a serious matter, people have found a solution to turn this particular thing to work on their advantage. Rentvesting is a portmanteau for rental and investing and is considered a growing trend among the younger demographic It works like this—a first-time buyer opts to purchase a property they can afford and leases it out. At the same time, this particular buyer rents or purchases an apartment of their choice for their own use. This allows those who want to invest in property without struggling for payment or even compromising their lifestyle. This also allows them to try different neighborhoods before committing to one only to regret it later. Definitely a smart move.
As a homeowner, you are actually considered a property investor. You are both an owner and an occupier of your property which is, in fact, the most common form of investment. The great thing about investing in a property you occupy as well as the exemption from capital gains tax. So by the time you want to sell the property, you don’t need to pay for it which adds to your profit. There are other benefits as well, so you get to really enjoy living in your own home.
Dual occupancy is another form of investment that is also called shared living. It works this way—multiple residences are built on a single lot, which allows for a maximized potential for a specific land. There’s a huge demand for townhouses in great locations, especially if it’s very accessible to retail stores and public transportation hubs. Developers who are looking into making the most of their investment, normally choose this option because it really does offer a lot more than the usual.
Investing via shares is one of the most popular options if you really want to get your foot on the property ladder. What makes this such an appealing choice is how it allows you to invest without actually going through all the intricacies of owning your own property—most especially, the expenses it entails. You would be able to invest by buying shares in an Australian real estate investment trust or companies that own industrial, retail, and even leisure ones like hotels.
There are different ways on how to start investing in property. You just need to know which one will work best for you and how much you are willing to work on your choice.