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Burbank Blog

A few home truths about building a home and all that surrounds it.

Is it time to invest?

05/02/2018


 

Thinking about investing? Fabulous.

Property is known for its reliability as an investment, largely due to its increasing worth year upon year and the fact that it’s a tangible asset.

Naturally, every property can be classed as an investment, as you’ll receive the generated financial growth the longer you’re in it - generally.

But what if you’re thinking about purchasing or building an investment property beyond your own dwelling, your intention to accumulate wealth via the means of renters and the increased capital that you’ll gain on the house?

If you are looking to invest, you’re in luck; Burbank offers a range of investor focused packages crafted to give investors as much value for their dollar as possible. The Burbank team not only specialise in creating fabulous detached homes which can be used as investments, but also offer medium and high-density dwellings including terraces, townhouses, apartments and home and land packages to cater for every investment need.

Before embarking on the investor journey, it’s a mighty fine idea to consider the pros and the cons, or the perks and the jerks, so that you can ensure your investment property will provide you with big bang for your bank.

THE PROS

Property investment is widely believed to be the safest investment in comparison to stocks, as they are relatively low-risk. You’ve got a tangible asset and no matter if the market crashes, you’ll still have a physical investment that cannot be completely wiped. Real estate markets are also quite stable and fluctuate far less than other markets which can be a little more volatile. It’s a pretty safe bet by comparison.

Income + capital growth. If you’ve got renters in your investment place, they’ll virtually pay off the mortgage for you, and you’ll receive an income along the way. Long term appreciation also means that (again, generally) prices will always go up, and over a 10-20 year period, the home is likely to have increased in value by tens to hundreds of thousands of dollars.

You can be dumb. Unlike the stock market, you don’t need to be a financial whiz to make good in the investment property game. In fact it is far less of a game altogether.

You can always move on in down the track if you’re looking to downsize or live in something a little newer, while pocketing the finances of selling your old place.

THE CONS

If you don’t have a tenant, you’ll need to fork out the cash for the time when your investment is empty.

If you do sell it down the line, you’ll have to cover agent’s fees, legal fees, as well as advertising costs.

Value candecrease - though property is generally quite safe and typically goes up as time goes on as we previously mentioned, all markets have the potential to crash, which is why you should spread your money across multiple investment types.

Interest rates - rising interest rates will impact your repayments, making the affordability of your investment more expensive (obviously).

THE SUMMARY

Investing in property is pretty darn safe, but you certainly shouldn’t place all of your eggs in one basket. While we've gone into a general pros and cons list here as to what you can expect from property investment, your best bet is to chat with our expert in-house team today - give 13 BURBANK a call to find out more.