Ask a room full of Aussies what the best investment is and you’ll be there all night.
Real estate, shares, or crypto. Everyone will have a strong opinion.
But only one of them is right.
After years of doing this, I know with absolute certainty that property is hands down the best investment class to create enough wealth to retire on.
Now I know people have reasons to invest in shares.
Maybe even crypto, collectible artwork and stamps.
But Only Real Estate Has The Power To Grow Wealth Fast Enough.
In other words, everything else doesn’t compare.
And sure, I’m not going to dismiss other assets. There are reasons to invest in other things.
You can get into shares and crypto with small amounts of money. You can’t get a house with a few hundred dollars.
And if you want, you can use other assets to build enough wealth to get your first property.
Shares can also provide an income like dividends. Crypto might be risky but if it pays off, it can pay off big time.
But for me, and for the clients we’re doing it for, real estate is the only way to make enough money to retire early.
Mark and Agnes, clients of ours are $550,000 in front after 3 years.
Janene is up $705,000.
And Nicolas is $110,000 ahead in a year from just one property.
Here’s The Proof – 6 Reasons Real Estate Is The Best Asset Class To Invest In
Reason 1. History Is On Its Side
The Australian real estate market is simply enormous. It’s worth a staggering $12 trillion.
And it’s not just the size of the market that’s impressive. It’s been reliably growing year after year, nice and consistently to help you sleep at night.
And if you go back in history, any property on any day in the past has always been worth more 10 years later.
Apart from some minor corrections here and there (and yes, they happen) property has kept climbing consistently.
Take a look at this chart, and see for yourself.
Nice, consistent growth. There are no major crashes like the 1997 sharemarket crash which wiped 25% off the value of the ASX.
Or the GFC in 2008 when shares fell 54% in 16 months.
There was no Covid crash which happened in the sharemarket, wiping 36% off the ASX in 4 weeks. In fact, house prices soared even as shares went the other way.
It’s not just about getting wealthy, it’s about getting wealthy and not worrying while you do.
And no other asset performs as reliably or as consistently, or so safely in an economic crisis as real estate.
Reason 2. Genuine Demand, Not Fake Demand
Another great reason to invest in real estate is the demand is genuine.
And by that, I mean people genuinely need housing.
Nobody needs a few shares of BHP.
You might want to own some Bitcoin.
But unlike shares or crypto, housing is something people will always need.
And when there are more buyers than houses, competition for real estate is fierce. And this keeps prices high.
Reason 3. A Structural Shortage
If there’s a shortage of goods in most markets, the market’s response is simple.
Make more.
But when it comes to houses, it’s not that simple.
And it’s not just the practical bit like a lack of tradies, the time it takes to subdivide land, get approvals, get finance and build it.
There’s a structural problem in the housing market too with no easy fix.
You see, for a developer to build a house, it needs to generate a certain amount of profit.
They have costs like getting the land ready, building the house and financing the deal.
Then they have the expected sale price, minus of course agent costs, advertising and so on.
For the developer to take a project on, they need enough profit to make it worthwhile.
And here’s the problem.
With building costs going up, less and less projects are feasible unless prices go up too.
Ironically, the only way to beat the housing crisis is for houses to be more expensive.
As a result, less houses get built which means less supply. And this actually forces prices higher.
It’s a catch-22, and it’s unique to real estate.
In fact, it’s this very situation which led Bruce, one of our clients to make a $176,000 capital gain on his investment while it was being built.
That’s more than his deposit.
Reason 4. Leverage
Leverage is one of the most powerful tools in property investing.
It’s the ability to buy a house with a small deposit. You can take a deposit of say, 10% and own an entire house with it.
A $60,000 deposit will let you buy a $600,000 house.
And sure, you still owe $540,000 to the bank.
But (and here’s the good bit) every bit of growth from that entire $600k house is yours.
If it goes up 20%, that extra $120,000 is yours, not the bank’s.
And guess what? You doubled your investment with a tiny 20% growth.
Real estate lets you get $10 worth of housing for just $1 invested.
The best you can do with shares is called margin, and it’s just $2 for every $1 you put in.
That $60k I mentioned? It can get you a $600k house, but just $120k in shares.
See why leverage is so powerful?
Reason 5. The Government Wants You (Or Should I Say Needs You) To Invest
The government knows they don’t have enough money for everyone when they retire.
And they need more houses to be built.
These two reasons are why real estate is the best vehicle there is for paying less tax.
You can offset any losses like interest payments, maintenance and council bills against your rental income. And you get a tax credit on all your costs.
You can even claim depreciation on hundreds of items in your house, including the physical house itself.
And when you sell after 12 months of holding the property, you only pay half tax on half the gain you made, not the full amount.
Reason 6. Not One, But Two Ways To Make Money
Real estate lets you make money two ways.
One is capital growth which is the value of your house going up.
And the second is the rental income you get every month.
At first, your rental income will probably just cover your loan repayments, but over time as rents continue to go up, your rental income becomes more and more significant.
With a portfolio structured the correct way, you can pay off a couple of houses in the future thanks to the capital gains, and replace your income with your rents.
This is how you use capital growth and rental income to replace your income, and potentially bring your retirement forward by years.
See Why Real Estate Is The Best Investment?
If you’re wondering how to turn all this to your advantage, you’re invited to book a time with one of our Senior Property Wealth Planners who can show you how.
We’ll map out an overview of what you should do, and when.
We’ll give you the steps to make it happen.
Plus, show the opportunities available in the market.
And of course answer any questions you have.
There’s no obligation or pressure here, and no cost either.
We figure if we give you actual value and information, you’ll see how deep our knowledge and experience is, and might consider using our services if you move ahead.
The best thing about real estate is that the odds are so heavily stacked in your favour.
And if you’ve watched your friends, family or colleagues get ahead by owning investment properties, now it’s your turn.
Enter your details below, and we’ll give you a quick call to set up an appointment.