Owning an investment property in Australia is one of the most popular wealth creation strategies and a very common aim for our clients. For those with a long-term investment horizon and stable cashflow, an investment property is an excellent option.
There are a number of reasons why investment properties are such great wealth creation assets. They are easily geared at low interest rates. They have low price volatility and most clients understand and are comfortable with property price cycle, therefore, very few people panic sell an investment property. Investment properties are tax effective due to negative gearing and the capital gains discount. Most importantly, properties have a long history of strong capital growth.