Your lifestyle’s comfortable. Your job’s steady, you’ve bought your first home and your repayments are hitting the bank on time. You get to take your family out on special occasions, and you’ve even managed to set aside some money.
Things are feeling pretty manageable right now. But the reality is—with a growing family and costs going through the roof, you’re also starting to wonder if you need to build some kind of safety net for the future. But what?
Ever considered investing in property?
In a previous blog post, we discussed real estate as one of the strategies you can use to grow your wealth over time. Today, we dive deeper into the topic, exploring the benefits of investing in real estate and sharing some tips on how you can get started.
A solid investment strategy
When it comes to building wealth for the future, real estate stands out as a solid investment strategy. Unlike other types of investments that tend to fluctuate wildly, real estate offers more stability especially if you look at it from a longer-term growth perspective. Property experts will tell you that properties double in value every 10 years, on average. And while this isn’t guaranteed, it shows how real estate can deliver impressive returns.
This means that an investment property you buy today can become a significant financial asset for you and your family down the track. With returns like that (and yes, we’ve seen it happen!), you could fund your kids’ education—or even retire a little earlier.
An extra stream of income
Beyond value growth, an investment property can also generate rental income. Think of it like having a second income stream to supplement your family’s budget. With careful planning, rental income can cover mortgage repayments, property maintenance, and even leave you with a little extra in your pocket. You may also be able to take advantage of tax benefits, such as claiming depreciation or deductions if your properties are negatively geared.
As your children’s needs expand (those school fees and extracurricular activities quickly add up!), this extra income will provide a much-needed financial buffer.
How to start investing in property
If you’re a beginner, here are a few tips that can help you get started:
- Define a clear budget
Before anything else, take a close look at your financials to determine how much you can afford to invest. You want to make sure that whatever money you set aside for this investment won’t put unnecessary pressure on your current lifestyle
Find out what your upfront costs are for buying a property investment such the deposit you’ll need, stamp duty, and any legal fees—different rules apply when investing in a property versus buying your own home. You may also look into ongoing expenses like maintenance and insurance to understand what’s financially feasible.
- Research the location
The return you’ll get on your investment property comes down to its location. Look for areas with strong growth potential. Proximity to schools, transport, and amenities often makes a property more attractive to tenants and ensures better long-term value. Understand the market, rental demand, and potential risks.
- Go in with the right mindset
No matter what you’ve been told previously, investing in real estate is rarely a get-rich-quick scheme. Be prepared to hold onto your investment for years before seeing its full benefit.
All this might sound like a lot, but you don’t have to do it alone. Buying an investment property is a big step—so consider consulting with a financial advisor or property expert for further insights and guidance.
A stepping stone for your children
One of the most rewarding aspects of investing in property is the chance to leave something tangible behind for your children. As your property investment gains in value, it can become a family legacy—something your children can inherit when they’re older.
This legacy can set them up financially—giving them a head start in life, and providing them with opportunities you worked hard to create.
Ready to take the next step in your financial journey? Drop us a line or give us a ring, we’re always happy to chat.
