04 Feb 15
Have you been procrastinating about plunging into the investment property market? Perhaps you have already investigated rental returns in your desired area, property values and projections of future capital gain. You most certainly would have looked at the tax advantages of negative gearing, but you are still hanging back. It’s a little hard to believe, but getting a good night’s sleep could be the incentive you need to take that first step.
Yes, that is right. Owning property can improve sleep quality, but before you dismiss the idea, you must be a little curious about this interesting claim. The answers will surprise, but are really very credible when comparing property with other investments.
Property owners have two distinct advantages over investors who put their money into shares, bonds and other intangible assets. The first is the level of security that is inherent in property and the second is the degree of control the owner has over this asset class.
That feeling of security comes from actually being able to see and touch an investment property. It is a tangible asset that, well maintained, will still exist and be earning income fifty, even a hundred years into the future. At All Residential Real Estate we have clients who started out with just one small rental property and progressively built a property portfolio that will sustain them well into retirement.
Who can say that about company shares? Certainly there are companies that have been around for just as long, but there are many more that have fallen victim to advancing technology, unrealistic speculation and global events outside their control. Just look at the disappearance of iconic brands like Holden.
This feeling of security is reinforced by the knowledge that everyone needs a roof over their head, and property can provide that. There will always be demand for property as long as there are humans on the earth. We all need somewhere to live, to feel safe, to rest and rejuvenate and keep our possessions secure. Just try keeping the rain out with a bundle of share certificates.
It does not require a brilliant education or a genius IQ to be successful in property. This leads us to the second reason why property owners sleep well. They have a degree of control over the performance of their asset that shareholders simply do not have. We only have to look at the millions of dollars wiped off superannuation funds during the global financial crisis. These were retirement savings that needed skills to manage them that were beyond most of us.
A rental property owner who is not satisfied with the performance of their property manager can simply change agencies. Our staff members regularly receive requests from disgruntled owners to take over the management of their properties. As the premier property management agency in our area, All Residential Real Estate is in the business of helping our clients to sleep well.