Property has been a popular route to wealth for many people for many years.
Buying their own home is often the first ‘investment’ many people make; purchasing another property may well be the second – even before shares and other assets.
But your first investment in property needn’t be your home.
Indeed, buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live.
Increasing numbers of people are choosing this route, buying in one suburb while renting in a more desirable and expensive area – or living at home for a while longer.
Sensible investments in property have many attractions. Property can be less volatile than shares – though not always – and it tends to be regarded as a safe haven when other assets are declining in value.
It has the potential to generate capital growth (an increase in the value of your asset) as well as rental income.
Then there’s the tax advantages associated with negative gearing.