What do Christmas and investment property have in common?
It's that time of year again, when carols are inescapable and the jolly red man threatens to break down our chimneys as he pops down to drop off presents. That's right, Christmas isn't far away at all. And since it's almost the festive season, have a look at some of the ways that Christmas is a lot like something we're a fan of: property investment.
They're hardly two things you will catch in the same sentence over the 12 days of Christmas, but hear us out – you might learn something new!
We spend billions on both
According to the Australian Retailers Association, we're going to spend $46.7 billion as a country this Christmas. And the Australian Prudential Regulatory Authority (APRA) notes that we spent $43 billion on new investment home loans in the year to September.
So it seems like there are two things we really love: Wealth creation through property investment and treating our loved ones. One takeaway here is the big, big jump in mortgages approved for investors. It means that despite headlines about a cooling market this year, it's still an enticing prospect for lots of people – and maybe you too.
A little patience goes a long way
When you get presents before December 25, it often spoils the fun to open them early. After all, the anticipation can be half the fun! It's a principle that can also apply to investment property. CoreLogic RP Data points out that the percentage of homes in Brisbane priced over the million dollar mark has gone from 0.1 per cent to 6 per cent in the last 20 years – property values and prices just keep on rising.
That means while you might want to cash in on capital gains as soon as you see them, it might be worth waiting a few years and then seeing how much your investment property has risen in value.
"Property investment isn't just for you: It's for your family"
They're great for kids
Property investment isn't just for you: It's for your family. When it's done right, this method of wealth creation can set up financial security for generations to come, giving you a high level of equity, and certainty that the kids are looked after.
As we've mentioned a couple of times so far, property investment and wealth creation has to be done right. That means taking stock of your financial situation, what you want to get out of your investment strategy and what your returns are likely to be. It's something that can be made much easier with the help of our team.