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More and more people prefer to invest their
money into real estate market rather than stock market. Why is that? Does
that mean that investment in stock market is bad investment? Not at all.
The main reason is the
investors has greater control over their asset, buying an actual bricks
and mortar asset which will be always be in demand and can be sold in the
market any time are always more preferable.
Reasons To Invest in
Melbourne
a) Banks are more comfortable lending money for real estate as it is
regarded as a ‘hard’ asset. Banks and financial institutions are more
hesitant to lend against stock market as they are subject to volatility and even
then they lend a smaller percentage of the total value of the asset.
b) Finance for investment properties is not subject to margin calls; when
compared with shares, property is generally regarded as a safer and less
volatile option than investing in the share-market.
c) Melbourne investment properties offer solid tax incentives to
investors, mainly in the form of tax depreciation on the property itself
which reduces their tax liability.
d) Investment property offers a good basis for leverage. This means that
the property acts as security in order to obtain finance for future
investment properties. This gives the investor the opportunity to build on
the existing equity in the properties and grow a sustainable and
profitable investment portfolio.
More info on
investment
property Melbourne and
Apartments for sale Melbourne
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