May 17, 2024 UFinancial

Why property remains the most secure investment for the next decade

Property or shares, the age old debate

In the current investment landscape, property stands out as the most secure option for the next ten years. Amid low supply and rapidly rising rents, Perth and the Gold Coast are emerging as prime markets for real estate investment.

Investors today face the question: “Where is the best place to invest?” Of course, there is the option of leaving your money in the bank, which still pays low interest and has its capital value eaten away by inflation, or the stock market that we know has been going through record levels regularly, but with the slowing economy we will see yields affected and share prices more volatile.

There are private equity funds, crypto and a whole range of other investment options. But increasingly in a volatile world, people come back to bricks and mortar.

Recent data indicates a reversal in migration trends, with people moving back to cities, particularly Perth, which is experiencing record population growth. Victoria, burdened by heavy debt and new taxes, has become a less attractive investment destination compared to other Australian states.

Encouragingly, the Australian Bureau of Statistics reports a rise in investor housing finance, which increased by 3.8% to $10.2 billion in March, 31.1% higher than the previous year. This underscores real estate’s long-term strength.

mortgage investment

Real estate is expected to remain strong for at least the next decade, given the persistent housing crisis and the lack of supply increase in the near future. This ongoing demand supports property investments as Australians will always need homes, whether to buy or rent.

A Domain report highlights significant increases in capital city house rentals, with the largest quarterly rise in 17 years. These increases are more of a market correction after a decade of flat growth.

For long-term investors, property remains a superior investment compared to shares. By choosing markets with strong growth potential, such as Perth and the Gold Coast, investors can secure their financial future and maximise returns in a stable and growing market.

If you would like to speak to a broker to discuss your investment potential, click here to book a chat.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.

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