We are often asked at open homes and other property events if real estate is a good investment and why so many people focus their efforts on building a property portfolio. The truth is that regardless of market fluctuations, owning property is much less risky than other forms of investment and has the potential to deliver much greater returns. Here are a few reasons why we think property remains a solid investment over time for savvy investors that do their homework and make sure the figures stack up.
- Less Volatility: even though we have seen some dramatic market fluctuations in the Sunshine Coast real estate market over the past few years, it is certainly true that property remains more secure and less volatile than shares, crypto or other schemes. Owning a real estate portfolio gives you a tangible asset that you can touch and see, unlike many other online investment options. As long as you don’t purchase at the top of the market and sell at the bottom, your investment should remain sound and continue earning money for you throughout the duration that hold it.
- Generates Income: owning a rental property is generating income that can either cover or offset costs of owning the asset. If you were to invest in a competitively priced property in the current market, we are seeing the lowest vacancy rates on the Sunshine Coast in decades and great returns in terms of weekly rental rates. The marketing for rental properties on the Sunshine Coast is competitive and landlords can select the right tenants to maintain and reside in their investment, essentially making the property do all the hard work.
- Tax and Growth: we do suggest that mum and dad investors work with a qualified accountant to setup their tax deductions throughout the duration of holding the investment property to ensure that property expenses are offset against rental income, generating the best yield. If you are savvy, you can generate revenue from your Sunshine Coast investment property while building capital growth that you will benefit from when you sell.
- No Specialised Knowledge: unlike complex investments you don’t need to understand the stock market or chase stocks throughout the day and night, with property you can easily do your own research to make an educated choice. There are so many resources online that can provide indications of market value and you have the option of building and pest reports when purchasing to ensure the condition of the investment property removing risk.
- Rely on Local Experts: working with a team of local experts can also help you to maximise your property portfolio. At First National Lifestyle, we have a dedicated team of sales experts and property managers that can make your journey easy and stress-free. Our real estate sales team can help you find the right property and give you insights into market trends while our property management team are able to protect your investment and ensure you get the best possible returns in the process.
Of course, investing in property on the Sunshine Coast is still subject to market conditions such as interest rates, entry and exit costs such as stamp duty and legal fees and the fact you cannot buy and sell portions of the investment like you could with shares or crypto. However, the tangibility of your asset, the low vacancy rates and unprecedented demand for rental properties puts property investments in a great position both now and into the future.
We partner with many property investors across the Sunshine Coast to not only help them buy and sell their portfolio but also manage it to get the best financial outcomes possible. Your real estate team will certainly impact the overall return on your investment so it is worth shopping around and choosing the team that will work the hardest for you. Our motto is that ‘We Put You First’ and we are committed to that in everything we do. If you already have a property portfolio that is being managed by another agency or you want to get your foot in the door, contact us today and find out how we can make your investment a solid investment for your future.