Investing in property

What is the best way to predict the future? Most agree that it is to study history. Certainly, a study of the past shows that property increases in value over time. Sure, it’s not a smooth predictable graph; but given time property goes up just as surely as the tide comes in. Usually the longer that values stall, the bigger the increase when it comes

I know that over many years I have bought many investment properties. Have they increased in value? You bet. Every last one of them. Does that make me good at picking the right property?

While I would like to say yes, the fact remains that all the properties that I didn’t buy, like the one next door to the one I did buy, have gone up and usually by the same percentage.

I know that I am very biased toward property. But that is simply because it is a safe and proven way to gain financial security. The down side? It is slow. Personally, I would prefer that against the hair-raising thrill-seeking journey toward financial security that most non-property investment vehicles provide. For the best proof that investing in property is safe, ask yourself this; Which business is the most conservative? Banking of course. And what is the asset that banks are keen to take security over when you want to borrow money? Real Estate of course.

I don’t know what you think, but I think there is a lot to be learned from that. Just look at the strength of Australian banks and their huge profits.

When is the best time to buy property? As soon as you can manage it. ESPECIALLY after a prolonged period of no growth. That would be now. Which property should you select? Well, that depends on many factors, but research proves that occupancy rates, maintenance and rent increases are definitely predictable influencers of the selection process. If you would like to know more, I am always available for a chat with “a would be” investor. The cost of my views? It may be as high as a cup of coffee at the most. If you are interested you can contact me at plees@peterlees.com.au

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