Building a property investment portfolio

Tuesday, 10th March 2015

Here is a nice article from Jacqui Thompson on Domain that looks at how many Australians have invested in real estate to build wealth.

As Dr Andrew Wilson, senior economist for the Domain Group points out “It’s been a very successful model for many Australians to build a nest egg, to take advantage of that strong aspiration for home ownership and the undersupply of dwellings that we typically experience in most capital cities.”

Another important point to note is banks love to lend on property. This allows you to build a much bigger investment portfolio. For example if you had $100,000 to invest, in either cash or equity, and you wanted to invest in property a bank may lend you $X towards purchasing an investment property.

On the other hand if you wanted to invest in a share portfolio, with the same deposit of $100,000 in cash or equity a bank may only lend you $X.

This is because banks generally view property as a safer risk than they do shares.

While we believe a balanced approach to investing is the right approach we certainly see a lot of upside with property as a key part of your investment portfolio.

If you have a question or would like to know more about investing in property join us at our next seminar or contact me, I would love to talk to you