Despite the challenges posed by the pandemic.,Iit is expected that the Australian real estate market will experience a boom in 2021. According to a study, the dwelling prices will rise to 16% in the next two years and commercial spaces still have the most robust ROI.
Shane Perry, an investment property expert at Max Funding. Predicts that the Australian real estate market will demonstrate significant recovery this year. He says, “As the world eases back to normalcy, the real estate properties in most areas are regaining their value. There is also a particular interest in regional areas as more people leave dense cities to find employment in more laid-back places.”
But let’s look at the finer details as to why investment specialists are confident about real estate properties:
1. Passive Income
With real estate, you have something to lean on when faced with unemployment or after retirement. Depending on the property's size, location, and existing amenities. You can have additional cash to cover certain expenses. These include loan payment, insurance, and property management.
It’s crucial to discuss with an experience real estate agent any plan of converting the property into a source of positive cash flow. This way, you’ll be guided which properties suit your goals. Moreover, here’s how to use Google AdWords to attract potential tenants.
2. Capital Growth
Capital growth is the increase of an asset’s value over time. Also, is the primary reason why real estate is popular among savvy investors.
The median house value in Australia has grown by 412% over the past 20 years. Creating an average annual growth rate of approximately 7%. Although property value doesn’t always increase, the long-term trend is that investment properties have notable capital growth.
Some people may be frustrated with the decline in real estate value last year, but always remember that space is necessary.
3. Tax Benefits
Tax benefits related to real estate property can be tricky, but a certified real estate agent can guide you on how to claim these.
There are various expenses involved in running an investment property that may be eligible for a tax deduction. These include maintenance and repairs, property management, and advertising. Additionally, even depreciation can be geared positively as long as you have the proper documents.
Depreciation is the natural decline in the value of the property and the assets within it over time. Furthermore, learn more about investment property tax deductions here.
4. No Specialised Knowledge Required
Unlike other investment options. Such as foreign investment trading and stocks, real estate investment is less complicated. You don’t have to deal with charts or watch the market daily because this type of asset is a lot more stable.
It’s only necessary to know that not all real estate properties are created equal. And that you may have to perform some changes to keep up with the current demand. Generally, you still need research, but the process will be easier with a real estate professional.
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