Wednesday, February 17, 2010

Why invest in property ?

• capital growth - Putting your money in the bank or investing in fixed interest does not give you any capital growth. If you purchase property, however, you do so expecting that the underlying value of the asset will grow. While this is generally the case, you need to ensure that you buy property in the right location to maximize your capital growth.
• rental income - start receiving an income almost straightaway
• hedge against inflation - One of the benefits of holding property is that property values increase at a greater rate than inflation.
• tax benefits - There are several tax benefits available to property investors, including claiming interest and expenses, and depreciation (both on the building and the fixtures and fittings).
• Appreciation - Rental properties normally appreciate in value with inflation. Increased value can mean sale and reinvestment in higher value properties, or provide an equity line of credit to use for other investments.

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