One of the golden rules with property investing is to stay emotionally unattached, yet its the one most commonly broken. It’s understandable. For many people a home is emotional, it’s our primary shelter and fulfils a deep need to have ‘a roof over our head’ and make a space for our family.
For others property is a powerful financial asset that has the ability to make money for its owners when it is traded astutely. The saying ‘property is the biggest investment you will ever make’ is true for a good reason, so make sure you create a home and a money making asset.
The Australian Bureau of Statistics reports that our love of home ownership remains strong. At August 2011 a whopping 67 per cent of all residential dwellings were owner occupied; this has remained relatively unchanged for the past 50 years. Australians continue to enjoy one of the highest rates of home ownership in the world coming in 20th, ahead of Canada, the USA, the UK and New Zealand. Most surprisingly it is Bulgaria and Lithuania who lead the world in home ownership with 97 per cent of their citizens owning the home they live in.
When figures show that over the long run residential property outperforms gold, it’s impossible to not see property as a powerful asset.
Make sure you keep at arms length when purchasing your first few homes.
Until you are financially independent your own home should be seen as a tax free, investment vehicle which is helping you achieve your end goals.
The information provided in this article is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance. In all cases we recommend you receive professional financial advice for your own personal circumstances.