How to benefit by buying your property now

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To buy your first property is a big decision and a huge commitment. Off course you should be comfortable and ready to take this step. If you wait for right time or too long it could mean you will miss on equity that you could have built that could make your future financially secure.

It’s safe investment

There’s something about investing in bricks and mortar that makes you feel your money is safe." data-share-imageurl="">

To buy your first property is a big decision and a huge commitment. Off course you should be comfortable and ready to take this step. If you wait for right time or too long it could mean you will miss on equity that you could have built that could make your future financially secure.

It’s safe investment

There’s something about investing in bricks and mortar that makes you feel your money is safe. But is this just a popular notion that we’ve grown comfortable with? What should you be looking for in a long-term investment and can property deliver?

Your investment strategy should be to grow your assets faster than the inflation rate. According to Australian Bureau of Statistics (ABS) data from June 2014 to March 2016, the Residential Property Price Index has risen by 12 per cent from 116.4 to 130.4 and the Consumer Price Index from 105.9 to 108.2, an increase of just over two per cent. So our house prices are currently outstripping inflation almost six times over.

And if you’re buying property purely as an investment, it offers tax incentives and equity you could use to buy more property. So if you’re saving for a deposit on a dream home and falling short of the amount you need, it could be worth thinking about buying an investment property now instead.

Should I buy now?

As the interest rates are as low as the current 1.5 per cent cash rate, it is cheaper and easier now to get a loan on any property purchase more affordable. It also means your deposit savings aren’t going to be growing much.

Make the most of your first buy

Do not rush into deciding to buy, it’s worth doing some research into which properties could add to your equity, faster. That all-important growth in value could come from buying a property and renovating or finding a suburb that’s on the rise, or both.

You need to do your research whatever the decision may be. Find suburbs where there’s new infrastructure in the pipeline, which is a good indicator of a future boom in property values. A certified valuer or real estate agent can give advice on additions that could improve your property’s resale value. And speak to an taxblock mortgage broker to get a real sense of what you can afford.

Are you thinking about buying your first property as a home or investment? Contact us

Tax Block Accountants

Ph: 0423 288 166

Share it now!
To buy your first property is a big decision and a huge commitment. Off course you should be comfortable and ready to take this step. If you wait for right time or too long it could mean you will miss on equity that you could have built that could make your future financially secure.

It’s safe investment

There’s something about investing in bricks and mortar that makes you feel your money is safe." data-share-imageurl="">