Is property still a good investment?

We don’t have a crystal ball, however what we are witnessing here in Perth is a slow down in the property market. By slow, we mean the market is stabilising and we could be amid a real estate plateau.

For the investor, this could be an opportune time to consider adding to your portfolio.

In the housing market:

• Housing prices are low

• There are many properties available

• Property prices are easier to negotiate in this market

• We could see an upswing in the market sooner than you think

What this means for you:

• You could have ‘investor regret’ if you don’t jump in now, you could be saying I wish I bought back in 2017

• More options mean you can find property that is ‘low-maintenance’, ‘ attractive’, has ‘wide appeal’ and is affordable

• Lower investment prices mean you can pass on the benefits to your tenants

There are many pros and cons to property investment including:

Pros

• Easy to understand

• Rental income goes towards paying off your investment

• Lowered risk compared to shares

• Tax deductions

Cons

• You can’t sell your property investment for parts (Shares can be sold off piece by piece and property can take longer to sell if you require the cash in a hurry)

• Cost to enter the market is higher than buying shares (but shares are riskier due to higher volatility and the fact that you could potentially lose all your money if things went belly up)

• Managing your tenants can be time consuming (but PEB Real Estate can help with this)

Is property investment right for me?

If you have a reasonable income and are looking to secure your future, then investing in property could certainly be the answer. Unlike shares and other investment options, property is easy to understand. Also, it is a tangible investment, meaning you can see your investment at any time.

Need help with your next investment?

PEB Property Group can help you get the investors edge and become a smart property investor with a free consultation.

We come to you!

PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer – Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.

Disclaimer: Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this edition is correct as of the date of publication and is subject to change.