Benefits of investing in real estate

By the resi financial blog team, 02 September 2013

Why should I invest in real estate

Buying into property is a steady and secure investment choice, and is perfect for those looking to acquire a valuable asset.

The purchase of a house is a decision that will affect both your finances and personal situation for many years. So it's important to make sure that whichever fixed or variable rate loan package you choose, the features of the loan suit your personal circumstances now and in the future.

Value

If you are planning on buying a home and living in it long term, then you will need the property to increase in value over time in order for it to be a profitable investment. Look for an area with a good annual growth rate as this indicates your property is likely to go up in value as the years roll by.

As you pay off your home loan and the value of your property increases so will your personal equity. You can then use this equity as security and borrow against it for things like a holiday, an extension on the house or to purchase an investment property.

No more landlords

Another benefit of owning your own home is that you won’t have to deal with a landlord and their rules.  As the owner, you make up the rules and can choose to make alterations that you see fit.

Feel like brightening up your kitchen with a fresh lick of paint? Well you'll have the freedom to splash some bright yellow on the walls - it'll be your kitchen after all!

Securing a great rate

Reductions made to the official cash rate by the Reserve Bank of Australia (RBA) over the last 18 months has made purchasing a house more affordable for many people across the country.

The most recent change made in May this year led to the RBA slashing the cash rate down to 2.75 per cent from three per cent flat.

For some of the best fixed interest rates in Australia, contact one of the resi loan specialists to see which loans are available to you.

Categories: Home Loans