Most young people starting out make sacrifices to become independent. They may work low-paying casual jobs to pay for university or complete an apprenticeship to get qualifications. If they leave home to access these opportunities, they usually forego new clothes and entertainment, and even eat poorly to pay rent and transport costs.
Enjoy Success but Temper it with Discipline
When they earn their first substantial salary, the temptation to make up for what they missed is great. They often spend wildly on parties, holidays, latest fashions, a new car or other symbols of their hard-earned status. While they have earned the right to enjoy these rewards, a little discipline could improve their long-term situation.
They would enjoy more financial security in the long term by having a chat with one of our investment experts at Fountain Property Group. The best results in wealth creation through property investment are achieved by starting as early as possible, and there are a couple of reasons for this.
Long-term Projections for Property are Still Solid
One is the long-term performance of the Australian property market. Over the past fifty years, property has doubled in value every ten years, apart from a couple of minor hiccups. Despite predictions that our property bubble is about to burst, this has not happened and some expert opinions suggest it is still unlikely.
If current trends continue, the most likely scenario is that over the next twenty years, property will increase in value. These increases may not be as high as the average long-term figure of seven percent a year, but should at least reach four percent. This is still a very healthy return for the person who has invested in the right type of property, and we can help with that.
Investors Need Good Advice When the Market Turns
There will always be market corrections as investors respond to whatever is going on in the world economy. It is during these corrections that investors “going it alone” without good advice lose out. The right kind of property in the right location is the key to riding out these market corrections.
Take Advantage of Negative Gearing While It’s Still Available
This brings us to the second reason for getting into property investment early in life. The right kind of property will consistently earn rental income. However, it may not cover all expenses, especially early in the term of a mortgage. Current negative gearing laws allow these losses to be used to reduce tax payable. These laws may not be around forever, so we believe the time to take advantage of them is now.
Why work hard in your early years to get a good job or enter a lucrative profession, then fritter it away with years of ill-disciplined spending? We can help you get the lifestyle you want in retirement by investing in property now.