1. Knowledge

Why Property?

The adage, "invest in bricks and mortar", seems to hold as true today as it has for centuries. Historically, real estate property prices appear to have not fluctuated as dramatically or as frequently as share prices. Although property may rise and fall in line with supply and demand, or because of changes in the economic climate, the property investor has usually not been subjected to the frequently dramatic highs and lows of the stock market.

On the other hand, in times of uncertainty, cash may be thought to be one of the safest investments. Even so, investors will sometimes see its value reduced by the effects of inflation. For these reasons, many people look to property as a more desirable investment alternative.

Consider the benefits

Apart from avoiding the previously outlined extremes of shares and cash as investment options, the investor has the potential to gain a number of valuable benefits by choosing to put his or her money into property.

These include worthwhile taxation advantages, good income return, the potential for capital gain in the medium to long term, security, and the perceived low risk that has made this type of investment attractive to so many people.

As a result, many people look to property investment as a way to fund their retirement, while others find it an effective means of reducing their taxable income through negative gearing.