Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
Introduction: Property Investment
The phrase ‘investmentproperty’ is considered a milestone for young investors. Primarily, because of Australia’sbooming increase in property prices within the past decade. Many of us (youth) doubt ourselves by saying “I will never be able to purchase a property in the future ”. This doubt is a harsh reality to many young investors. However, if the youth understood the range of avenues in which one can purchase an investment property ,then this doubt could begin to diminish.
What is Property Investment?
Property investment is the purchase of a real estate to earn a profit. Profit is earned through rental income or future resale of the property. Investors can purchase a property outright or through a mortgage. A mortgage initially provides a lower return. Primarily because the rent should be used to pay off the mortgage.
Why should you invest in Property?
Investment properties area great long-term financial decision. Because investment properties can instantly generate a healthy ongoing passive income, once you finished paying off the mortgage. Also, the property price could potentially increase over time, providing a capital gain if you resold the property.
The property market is less volatile then the stock market. This is because the property market price does not fluctuate rapidly like the stock market. Additionally, a property is a tangible investment. Tangible investments reduce your exposure to inflation, exchange rates, and interest rates. Second to that, tangible investments diversify your portfolio. Further reducing your market risk.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Thomas He, associate at YIG