INVESTING
Why Property can be so Powerful
Property Risks to Consider
Is Property a Better Investment than the other 3 Key assets?
INVESTING
Why Property can be so Powerful
Beyond the numbers, here’ s why property investing remains a favourite among wealth builders:
• Leverage- Banks finance 80 – 90 % of the deal, but you get 100 % of the growth.
• Stability- Property markets generally move slower and are less volatile than stocks or crypto.
• Control- You can increase your returns through renovations, better management, and negotiation.
• Tax Efficiency- Interest deductions, depreciation, and smart structuring can significantly reduce your tax bill.
• Cash Flow- Monthly rental income can cover your bond and expenses- and often leave you with profit.
Property Risks to Consider
Every investment comes with risks, and property is no exception. Some key ones to note:
• Vacancy Risk- If you can’ t find tenants, you still owe the bond.
• Maintenance and Repairs- Properties need upkeep.
• Interest Rate Increases- Can eat into your cash flow.
• Market Cycles- Property values don’ t always go up.
However, these can be mitigated with due diligence, professional management, and long-term strategy.
Is Property a Better Investment than the other 3 Key assets?
There’ s no universal answer all assets have their pros and cons. But when you look at the real, measurable returns from rental income, capital growth, and the ability to leverage other people’ s money, property investment can outperform many traditional asset classes- especially over the long term.
It’ s about more than numbers. It’ s about control, strategy, and building generational wealth.
34 REI MAGAZINE APRIL 2025