Unconventional Property Investment
WHAT REALLY SETS PROPERTY APART FROM OTHER INVESTMENTS?
Aside from return on investment, potential for negative gearing and the opportunity to gain a loan for a majority of the investment’s value, there are other factors that distinguish property from other investments.
While anticipated return is obviously an important reason for selecting one investment over the other, there are aspects of property investment that may be more suited to some people’s personalities and goals.
Here’s some unconventional reasons property investment may be the way to go.
You get something tangible
For those that like to see progress in their achievements, then property investment may be for you.
Unlike looking at an increasing bank balance or having to watch share prices move, property is something that can be touched, explored and physically seen, other than on a computer screen.
It is one of the reasons property investment is so popular, as it helps people grasp and justify what they are spending.
It’s easier to share your achievement with others
With something more tangible, it makes it easier for others to understand your achievement without the need to talk hardcore numbers. Some people prefer property investment so that they can post about it on social media with a photo, something that is virtually impossible to do with other investments.
This could be why property investment is popular with younger generations. Talking about your bank balance or listing the companies in which you own shares in will probably be an awkward topic for discussion, but mentioning that you own an investment property isn’t.
Investment that involves interaction with people
This may be a turn off for some, but it is what others like.
I think it is what sets property apart and depending on personality, it can really be a defining aspect.Shares involve a fund manager or broker at times, but most transactions are conducted online without any human contact.
With property investment, there are real estate agents, a property manager, tenants and a few others along the way too. If you aren’t one who wants a dull investment, property is a lively option.
It might prove useful down the track
Shares and other investments can prove useful too as they can grow and be sold but a property investment is valuable in a different and unrivalled way.
If you are renovating your own home or need somewhere to stay short term, you can move in to the investment property.
Houses serve a basic human need which other investments do not.
It’s also a way to save money as you won’t need to worry about competing for a rental property or paying rent elsewhere.
You can get creative
Once you buy shares, that’s it. There’s the odd opportunity to attend a meeting or vote for who you want to be in charge, but not much else. With a property, even if it is an investment, you can do what you like to it to maximise potential rental income for the respective market.
Putting your own stamp on it can really make it personal and define it as your own. Every share in a company is essentially the same and there’s no scope to add a personal touch at all.
Personality isn’t something usually put into the mix when considering investment options as a dollar value can’t be placed on it but I think it should definitely be for the investment to truly be worthwhile for the individual.
The bottom line is worked out differently
Unlike other investments, calculating how much you’ve made relies on other factors, which should be kept in mind.
An investment property can be depreciated as things inside and out get older. Rates, land tax, loan interest and advertising for tenants are just some of the things that can also be claimed against your taxable income.
With these things in mind, there is a greater potential to make money.
Bruce Oliver is the co-founder of Xynergy Realty.