Musings of Ivan Kaye
This morning , I read an interesting article on Property Investing by James Gerard in The Australian this morning.....
Which got me thinking ..... Is property investment still a powerful wealth creation strategy in Australia?
My view is yes for the following reasons :-
- it is an ideal mechanism to use leverage to the maximum advantage.... through bank debt and tax incentives . Gearing - or using other people’s money - to invest in growth assets - is a key to growing your wealth.....which is why property has been a succesful wealth creating strategy for many Australians over the years
- Australia is a stable sought after place to live - so demand for property in sought after areas should continue to be strong
- There is a strong demand for properties in good areas
- As a result you should get both rental returns and capital gains in the long term
But - There is always a but
- It’s all in the buying !!!
- The right area
- Near schools and stations
- Quality Building ....
- where there is infrastructure
- Demographic change and gentrification
Over the years, we ( my family and our clients at Ark) have been fortunate in using Property as an asset class to build wealth .....
And I think the fundamentals of property investment is still solid .
Property Investment Forums?
Are you interested in learning more about how best to invest in Property ?
If so , I would like to to explore these concepts at our finance forums over the next year.
Let me know