5 Reasons Why Real Estate is a Good Long-Term Investment

Australia is much like any other country in that the landmass is finite. The population is steadily rising, which puts a greater demand on land, and prices rise higher than the cost of living. The supply/demand rule sees any commodity that is in demand experience a price increase, as the asset becomes more desirable.

Let's have a quick look at a few of the reasons why real estate meets the requirements of a long-term investor.

1. Location is everything – While land prices always rise, if you choose the right area, the price increase can be very significant, so much so that you can double your investment in just 5 years. Suburbs are being created around cities like Sydney, Melbourne, Perth and Brisbane, and if you buy a property before development begins, you can make a killing. Keep your eyes open on the outskirts of cities and towns, looking for development signs, which are obvious; then check the land prices and project the future of the area. If you think buildings will be put up and people will move to the area, this would be a place to acquire real estate.
2. Rental properties – The best way to secure a regular income with real estate is to rent out the property. This might be part of a 10-year property investment plan that is designed to generate wealth; you need the help of a leading property management company, as they provide all the services a landlord needs. Many wealthy investors started out with a single rental property and gradually built their portfolio, thanks to financial advice from experts.
3. Less volatility - Take a look at the Australian stock market, and you can see that things are not stable; many private investors sell their stocks and shares and put their wealth into bricks and mortar. Gold and other precious metals are also doing well, but real estate is exceeding forecasts, and this looks like a long-term trend. Click here for tips on how to maintain your home.
4. Rising population – In Australia, births are on the rise, as they are globally, and with more humans on the planet, the greater the need for land and shelter. Expanding towns and cities offer great investment opportunities; you could acquire an empty plot and build a house that you could sell once the area is developed. Those who arrive in a city to work need somewhere to live, so the demand for residential rentals is high; there are several markets you could target; you could build an apartment building, or a high-end detached house for corporate executives.
5. Minimal taxation – Putting your wealth into land and real estate means you will pay less in tax than some other investments, which adds to the attraction. Talk to a financial advisor about the benefits of real estate investment, which will help you make an informed decision.

Real estate has long been a solid investment here in Australia; development demands accommodation, and that doesn’t look like changing anytime soon.