Negative gearing lives – established property remains a solid investment

Thanks to the recent re-election of the Liberal government negative gearing for second-hand property is here to stay. This key tax benefit as well as the fact that there will always be a demand for rental properties (people need places to live if they don’t own) means that bricks and mortar remains a solid investment choice.

People want and need the security that a home can bring; and with suggestions that more people are opting to rent than buy these days, and even some economists postulating that young Australians may be better off renting, this is likely to continue in the foreseeable future. What it simply comes down to is that people need a place to live and that will always create a demand for an essential human need.

Like any investment there may be potential risks, but in comparison to other strategies for investing, residential property is far more in the control of the investor.

Properties change hands as people’s personal needs and requirements change, and sometimes these can extend into market trends. Growing families needing to up-size and retirees looking to downsize are two examples of this. As householders move on, others will move in. Properties vacated by homeowners may prove good opportunities for the investor wishing to begin or grow an investment property portfolio.

Increasing the value of your existing investment property can, literally, be in your hands. A little bit of ‘self-improvement’ can go a long way when it comes to rent prices and re-sale; but before you go all out on renovations, talk with your property manager. That way, you can be more confident any improvements you make will attract good tenants and increase your property’s value.

Whether it be apartment-living or the stand-alone house, our cities are expanding up and out to accommodate our need for shelter. And while our land volume is not growing, our population is; and it is increasing at a fast rate.

Property investors have a unique role to play in meeting the growing need for housing that comes with it.