Property as an Investment Asset Class in South Australia
Property can help diversify your investment portfolio, with varying outcomes over time, depending on what type of property you invest in. It is therefore important to understand the nuances of property investment and its role within your overall financial strategy. EGY Investments in South Australia can help.
We Cover All Tracks
We can assist clients with all the key elements of investing to help them achieve their portfolio objectives. As a comprehensive financial advisor business, we are sure to leave no stone unturned when getting the best out of your property.
Key Considerations
Typically, Australians purchase property either directly or through an investment fund and generally make this investment either in their own name, through a trust or within an SMSF. They are choosing property as part of their investment strategy because of the:
- Regular income from rental returns
- Potential capital growth from rising property values
- Lower level of volatility compared to many other growth oriented asset classes
- Potential of positive tax outcomes (i.e. negative gearing and property expense deductions).
All Property Decisions Must However Consider the Costs and Risks, Including:
Expectation Levels
Expected rental returns not meeting expectations
Value
Decline in property value in certain market conditions
Fees
Purchase costs (e.g. stamp duty, legal fees, advice fees, property inspection reports and loan establishment fees)
Permanent Costs
Ongoing costs (e.g. property maintenance, rates, body corporate fees, bank fees and insurance)
Shares
Lower liquidity than other asset classes (e.g. shares).
For more advice on the next steps to take with your property , call +61 400 355 045