Whether you have been saving for a while or maybe you won the lotto, either way you want to be smart with your money and invest it for future use. With so many investment plans around it can be hard to know exactly what is the best option for you.
If you do you research, you can invest your money in a variety of different portfolios such as buying shares (Apple or Microsoft anyone?) or stocks and bonds. However, these options are considered high-risk and not suitable for most people. If you are investing as part of your retirement fund, or to save money for your children’s education you may want something more long-term. This is where investing in real estate could be a perfect match.
Investing in property is considered by many as one of the safest and easiest options when it comes to investing. The value of your property will, except on rare occasions, increase over time. Even if you purchase the worst house in the area you will make money on your investment. Of course it is a good idea to research and plan thoroughly when making the decision on where to buy because buying in a great neighbourhood will guarantee your investment will be successful – not only in increased capital gain but also in high rent you will be able to collect.
Buying an investment property is not a get-rich quick scheme, so it is probably not the right fit for you if you need money quickly. It may be years, if not decades before you will see any returns on your investment. The returns you will get from property investment will come from rental income that tenants pay, and from any increase value of the property over time. This is why most people buy investment properties to make a long-term profit. If you need money for some reason, you can sell the house but it could take a while and the process is not as fast as it is to sell other investments such as shares.
Another reason people may think twice about investing in real estate is they may spend a lot of time looking for suitable properties to buy, finding and managing tenants, and arranging for maintenance work to be done. Don’t let this put you off as there are many great Property Managers out there who will take all the stress away from you.
Contact us today if you would like more information about how a Property Manager can help you.