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Why invest in property?

Residential property is a proven and popular method of investment in Australia, and there are a number of reasons why: 

  • Long history of sound returns: The July 2013 Russell Investments/ASX Long Term Investing Report showed that residential Australian investment property returned an average gross of 6.5% and 9.5% over the past ten and 20 years (to 31 December 2012), respectively. This compares favourably with other forms of investment over the same time periods. 

  • You can earn rental income as well as capital growth: Ongoing rent from tenants can help you service your loan repayments, while capital growth (where the property rises in value) can provide gains when you sell the property. 

  • Property may provide tax advantages: Property can provide tax advantages where the cost of owning the investment exceeds the income you receive. 

  • Improvements to increase value: You can exert direct control over the value of your investment by making improvements to your property. 

In addition, Perth property presents particular opportunity for investors due to a number of sound underlying factors:

  • Strong ongoing economic growth driven by an expanding resources industry and related infrastructure development.

  • Sound population growth, which has contributed to a housing shortage.

  • Low unemployment and high disposable income compared to wider Australia.