Is There Still Real Money in Real Estate Investing?

We are often told that real estate is one of the only secure places to earn long-term investment returns.  With so many savvy investors now cleverly managing their own share portfolios and strategising with their superannuation, you may wonder, are real estate investors really being left behind?

The short answer is no.  Real estate is, and always will be, a smart investment.  With a relatively small scope of strategies to choose from, and calculations novice investors can conduct at home, property investment can be a project filled with promise.

Keep in mind there may be spells of financial discomfort over the lifetime of your loan and real estate remains true to all investments in that there is no quick cash grab.  If you ride the ups and downs of real estate and not overextend yourself, there could be significant wins when it matters to you most.

As a general rule, 2 key property investment strategies can provide potential income in future years.  The first being property improvements.  Increasing the value of a property can be the simplest and shortest way to see a return.  With significant research on your chosen area, calculations including the cost of borrowing money, and a buffer should you need to retain the property in case of a market shift, this can be a winning strategy well worth investigating.

The second strategy is carefully choosing a property that earns rental income.  Owning a rental property is stressful for some and smooth sailing for others, so be prepared either way.  Ensure your financial input covers the cost of agent fees, strata fees, insurances, and more.  Negative gearing sounds impressive, but earning passive income from a rental property offers more options when you scale down work later in life.

If neither of those sound just right, yet real estate still appeals to you, there are also options in commercial properties, holiday rental, and granny flats, to name but a few.  With a strong strategy and sites set on a long-term goal, real estate remains a winning investment.