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Property Investment: is it right for you?

There has been a major rise in real estate investment in Australia in recent times and it is not really difficult to see why this is happening. It is a sure thing that demands for houses will continue to rise as the population of any country continues to increase but in addition to this, there are also the low-interest rates on loans and other factors which may support investing in property.

As you already know about all investments there is a significant risk involved and there is always going to be a downside. In this post, we will open your eyes to those risks and other available options in the industry which may suit you better. In the end, you will no doubt be wiser and be able to decide whether property investment is truly for you or not. So please keep reading.

Why should you invest?

There are so many reasons why one should invest in property and the obvious swell in demand is the first that comes to mind. This increase in demands means that the value for these properties will continue to soar higher which means increment in profit when the owner decides to sell.

There is also the fact that one can continually get income from the rents while also being able to cash in some more money in the future is the house is sold. These rents can as well help to pay off the mortgage while the owner virtually pays nothing to gain ownership of the house.

Furthermore, property investments are less volatile when compared to other assets like shares and bonds.

What is the downside?

Of course, as with every business, there are negatives to owning houses and other landed properties. First one should know that even with the increase in population in a country, the value of houses in a particular area or political state can drop due to so many other factors out of the owner’s control.

Some of these factors include war, insecurity in the area, lack of or destruction to existing social amenities, reduction in infrastructure, and every other thing that may tend to result in emigration.

Houses are usually good long-term investments and may result in bad short-term investments because sometimes it takes longer than estimated for the value of properties to start to rise. It may also take months to sell a house at the right price which may result in selling it below the market value if liquid money is needed as a matter of urgency by the owner.

There is also too much risk involved in buying up a big property as it seen as putting too much or all of your eggs in one basket giving less room for diversification which may help reduce overall risks.

What options are available?

Investment vehicles such as managed funds and real estate investment trusts are available in Australia which can both serve as good alternatives to out rightly purchasing properties and can help you in getting a pie from different sectors of the industry.

In order to learn more about these options and assistance in helping you choose what is best for you depending on your current needs and financial situation, contact Professional Business Accountants and Tax Agents in Melbourne from Opulent Accountants.

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Nishant Kosambi
Nishant Kosambi
2 February 2023
Excellent work by Dayan, Chamie, Lihini and the entire team. They have always been very professional and helpful. They have taken care of my business and personal tax obligations for many years. They have also sought financial solutions for me. I am very happy with how thorough Dayan is with his work. Clear communication and regular follow-ups all the way. 5 stars for this gem of a person and his team.
Ajith Ratnarajah
Ajith Ratnarajah
6 November 2022
These guys are very professional. You get the best of both worlds of a personalised service from a company rather than from an individual accountant. Their processes are well established. I would strongly recommend Opulent for any small, big companies and high net worth individuals.
Da Bella
Da Bella
12 August 2022
I consider myself extremely luck to be introduced to Dayan and his team. I found the solution to my loan requirement in one meeting itself...Super efficient, friendly and humble....Opulent finance rocks!!
srikanth chintalapudi
srikanth chintalapudi
11 July 2022
Dayan and his team did it again!!! They're proactive and provided timely advice in the recent sale of my investment property. They're advice saved me a lot of $$. Dayan and his team have been assisting me for the last 10+ years and they're always a lifesaver. Highly recommend!
Chamith Subasinghe
Chamith Subasinghe
15 February 2022
The team at Opulent have been extremely helpful and resourceful in securing a home loan for me. The responses have always been quick and progress made quickly through the loan application process. The advice provided by Opulent is high quality and very useful, special call out to Ishara and Dayan who have been very knowledgeable, experienced and professional. I have recommended Opulent to my friends and they have had positive experiences as well. I would highly recommend giving Opulent a go!
Daniel C
Daniel C
26 December 2021
Highly recommend Opulent Accountants! I've been lucky enough to deal with Hasi, Dayan and Charlene and all three of them have been a great help. Thanks guys.
Sam
Sam
5 November 2021
Great Accountants and Mortgage Brokers. Prompt, Professional, Well-informed and Responsive.
Kesh Aryaratne
Kesh Aryaratne
11 October 2021
The team at Opulent are professional, accessible, friendly and most importantly prompt in getting matters sorted. I have had the pleasure in dealing with both Dayan and Hasi who have guided me throughout and have been extremely helpful in getting my complex tax matters sorted on time and in a professional manner. Great work guys.
Mukesh S
Mukesh S
29 September 2021
I was apprehensive to take the plunge into refinancing my loans. However Dayan and his team were very patient and made it a point to respond to all my queries and doubts . They must be leading busy lives themselves, however they were flexible and accommodative of my requests for meetings at close of business hours. Further I noticed that they are particular in their and the customer's paperwork. Along with Dayan, I'd like to call out the efforts put in by Ishara for ensuring a smooth transition. She has ben patient with my many queries and diligent in her handling of the paperwork. Thank you Dayan and team.