Dilleen Property Group 2022

Buying An Appreciating Asset

When people buy items such as cars and iPhones, these are depreciating assets that will not give you a strong return in future. For example, people will buy a $20,000 car, wherein 4 years it will only be worth $5,000.

Real estate is considered an appreciating asset in which the statistics speak for themselves. For example, if you’re buying a property at $200,000 in 5 years’ time the value will go up to $250,000 - $300,000 (subject to location and other factors).

Buying A Tangible Asset

A tangible asset is different from other assets such as stocks and crypto because real estate is a physical asset that you can have control over, such as renovations, living in the property or renting. It gives you more power to determine and dictate what you would like to achieve.

Building Long-Term Wealth

Investing in assets such as stocks and crypto can allow you to earn money in the short term, however, they are considered more volatile and riskier. Real estate is seen as a safer option that is used as a long-term strategy to build wealth.

If you purchase a positively geared property, you will also receive a rental income that can cover your mortgage costs and expenses. The property can also be leveraged to further build your property investment portfolio.

Real estate should be looked at as stepping stones to get to the next property and the next to build long-term wealth.

Capital Growth

Using capital growth to help build your property portfolio is a great strategy. Ideally, you want the property markets to do the heavy lifting for you, which is why it is important to research locations and markets.

Leaving a Legacy

Leaving a legacy and passing it on to your kids is a big reason why people invest in property. Investors can leave a physical asset to their children in which they can live in the property, keep it as an investment or continue renting it out.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.