How to Make Great Money With Property Investment…

Nov. 26, 2010 - PRLog -- From the many investment options available including: shares, businesses, collectibles etc., property is a great way to achieve financial freedom, offering both flexibility and true growth with inevitable increases in value over time.

The increase in property values over time is what we call: capital growth and, on average, Australian properties increase approximately 8% every year. This means that property values and prices double every 7-10 years. This piece of information is so powerful as it can help you to build huge wealth in equity, equity that can be used as further security to borrow more money and continue investing. Or alternatively, you can sell the property to uncover the equity you have gained.

It’s important to understand that you shouldn’t expect property to increase the average 8% every year. Property prices don’t increase in a straight line but rather in cycles with three stages: Boom, Slump and Recovery. Over a period of time the prices should average out so that some years in the “Boom” period you may experience more than 8% growth, but conversely in “Slump” periods you may experience less.

Many factors influence capital growth and different areas will see varying levels of growth. Some of the reasons for faster and increased growth could include: development of infrastructure, new hospitals, new schools, new transport lines and the changing demographics of an area. Investing and acquiring property needs to be seen from a business point of view. Property or real estate is just like any other commodity traded on the open market – it is affected by supply and demand. So if you can find an area where in the future you can see or forecast the demand for a similar property to yours exceeding the supply than you should experience accelerated capital growth in the years to come.
“While property is a great investment, not all property makes great investment property. Or more precisely, some properties are better for investment than others,” explains Christina Penrose of RE/MAX Profile.

“Some properties have certain advantages to professional property investors by offering greater taxation savings through depreciation and simplicity of investment. That being strong returns and low maintenance and repairs.”

“Many first time property investors make common mistakes. Sadly these mistakes can make the property investment experience stressful and therefore limit the extent to which people invest.”

“If an investor has a bad experience on their first investment, they are less likely to build a property portfolio or even purchase a second investment,” concludes Christina.

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Property Rentals Brisbane Pty Ltd T/as RE/MAX Profile Real Estate provide exceptional property management services across Brisbane for details and free consumer reports for landlords and tenants visit http://www.propertyrentalsbrisbane.com

For more information about Grant Penrose and Christina Penrose from RE/MAX Profile Real Estate and a copy of their book "How to sell your home for a dream price in record time" and free consumer reports for home buyers and sellers including ""The 7 Big Costly Mistakes People Make When Selling a Home & How To Avoid Them" visit the website http://www.propertysalesbrisbane.com