Online Calculator | Why Property Investment Is Still The Number One Wealth Creation Vehicle

Why Property Investment Is Still The Number One Wealth Creation Vehicle

So, is property investment still the best set and forget wealth creation vehicle?

Some good years came, then the bad years dropped and now, it’s back to good years again in the property market. Following the great financial crisis in 2008 that sparked a row of property panic in Australia, the government’s policies and large reserves have protected the market well and came out marginally safe, at least when compared to less fortunate neighbours like Singapore and perhaps Malaysia.

Property in Melbourne has undergone a year of stability and you can expect it to go further in the coming years. If you are in the position to purchase an investment property, you may want to consider Melbourne.

Before you do though, you may ask why property? How about stocks and shares, or even bonds (recall Lehman Brothers!) and blue chips? Although investors have choices as to where to put their cash, property is always the investment class that people consider ‘safe as houses’.

Property in Melbourne has traditionally been very stable and profitable. As we have seen in the last few years, the property market in Australia has more than held it’s own, even through these tough years of global recession. Given the stability of property as an investment class, you can have a degree of security knowing that your money is invested in an income-producing asset with an intrinsic value.

The next temptation that comes after safety is naturally profit.

The next two years are looking like being the best years to invest in property, as it will be just ahead of the peak of the next property boom. According to last year’s reports, the average prices for Melbourne have increased by 10%.

In addition, experts have also cast their predictions of a low supply vs. massive demand in the next few years. Coupled with the increasing population in Melbourne and Australia on the whole, it is not hard to see why investment property Melbourne values will continue to grow.

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