10 Reasons why investing in property is STILL the best investment option!
1. Passive income for life!
Real estate has the ability to create everlasting passive income when buying in the right market, right location and using the right management team to manage your property.
2. Rental income increase
The rental charged for your tenants can be increased yearly between 8 – 10% and beats inflation.
3. Creating wealth
It is important to note that your wealth increases every month with each bond down payment. The property increases in value and will earn positive cash flow after a few years.
4. Pension fund
A property can be purchased with the bank’s money and small monthly shortfalls that diminish over time and eventually disappear. The equity in the property and the physical asset behind it is a perfect vehicle for retirement. When the property is paid off, most of the return can be used to live on.
5. Proven track record
Property has a proven track record over the past 100 years and when comparing your inset cost vs. the inset cost needed for any other retirement vehicle, property comes out on top.
Real estate is a stable investment, backed by an asset and is not influence by changes in the markets as drastically, as any other retirement or investment options.
The Banks will not offer you a bond if the property is not worth the purchase price and if you cannot afford it. This is a tangible asset that will grow in value, some faster than others, but when purchasing in the best location at the best price, this will normally be the case.
8. Tax advantages
When purchasing Investment Property, your interest on your bond is tax deductible. Obtaining properties that fall under Section 13sex, will allow you to receive a huge tax deduction of up to 80% tax write off of the purchase price of the property.
A proper Property Investment Plan will allow you to gear your investment property by utilising the banks’ money.
10. Immediate title ownership
When purchasing property in your personal name, Trust or Company, you are the owner of this property and this gives you the ability to sell or finance when you decide to do so.