If we were to pose this question to you what do you think your answer would be? I think most people would assume it’s because of the strong capital growth we’ve seen over the last year or so. Couple this with good rental returns backed up by a stable national economy and you could be forgiven for thinking that’s all there is to it.
Don’t get me wrong, these are definitely valid reasons, however behind the raw data and statistics lie other less tangible reasons why Australian mums and dads invest in property.
Let’s explore some of these little appreciated drivers in the market.
One of the most influential has to be that the number of Australian independent financial advisers is on the rise which really shows that financial advice is much more readily available than ever before. Obviously, advice provides the framework of a readily understandable plan that provides confidence to invest. Confidence in the future is critical to committing to long term investment and Financial Planners have the expertise to guide their customers in that regard. While not all financial planners appreciate the importance of having property as part of a plan, the number of planners who do is growing all the time.
Another overlooked reason as to why Australian Property Investing is on the rise can be attributed to Australian investment education seminars and workshops. These forums are easily within reach of all Australians and more often than not are free of charge. Although some come with a heavy sales focus which can be confronting, education only workshops are good value for those wishing to extend their knowledge and understanding. This search for knowledge extends to a large portion of the population which can clearly be seen in the number of people who attend these events and seek information about Australian investment services.
A number of Australian investment services are offered by financial planners and stock brokers all the way through to mortgage brokers. Given the complex nature of investing, it’s understandable that there is a wide variety of skills needed to manage your financial future. The growing number of businesses that encompass all of the necessary advice pieces are increasing in response to investor demand. These days it’s much easier to coordinate asset purchases with any finance and insurance requirements when it’s all done in house. The complexities of Superannuation and any resultant advice on Self-Managed Super Funds and rollovers is covered holistically with the other areas.
Without a doubt, most people feel comfortable with Australian investment property. Let’s face it, Bricks and Mortar are a solid investment which many people are attracted to. The complexities of where to invest, what type of property to buy and how it’s financed are all questions that can be answered by competent professionals in each of the respective fields. It’s worthwhile keeping in mind that finance advice should come from a Mortgage Broker, property selection from a Property Advisor and the overall goal should be finalised after consultation with a licensed Financial Planner. Naturally, coordinating all these parties individually can be difficult and this is where having everyone under the one roof is more convenient. Remember, you should be comfortable that each one is looking out for your best interests obviously.
Perhaps when it is all said and done, it’s these intangibles that are being reflected in the increasing popularity of Australian investment property rather than simple movements in price and yield.