Property is always a safe investment
There is always stress surrounding the sale or purchase of property. This is probably driven by the various current affairs shows and the electronic media providing a hypermarket for those about to participate in the property market. Statements like “this is a persons largest investment” and “the property bubble is about to burst” always frighten the consumer.
This hyperactive and shock journalism has always confounded me. Property has always been a safe bet! In Australia, there has always been safety in bricks and mortar. It is the only investment that a consumer will make that is generally guaranteed some form of appreciation in the future. There is nothing else that a consumer will buy that will increase in value. You buy a new car, you drive it out of the car yard, and it immediately loses value. Apart from antiques, any large piece of furniture will also depreciate in value. In other words, the fears associated with property are misplaced.
A veteran of the Real Estate Industry, Bill Austin of Home Way First National, said something poignant to me the other day: “Property always forgives!” If you hold on to the investment, it will always give you a positive return.
Bill couldn’t be closer to the truth. It doesn’t matter what you do when buying property, even if you buy a property for too much, in time, it will provide you with capital gains.