Why Invest In Property?

Do you want to invest for your future but don’t know which asset class (shares, property, or business) to invest your hard-earned dollars into? This is a question that is posed to us time and again. There are benefits and risks when investing in any asset class. However, we have personally found that investing in residential property has given us a great return on our investment with the least risk. You can invest in property even when you have little or no equity, own your home, and have lots of bad debt.


We call property the I.D.E.A.L investment because it provides the following:

  • Income
  • Depreciation
  • Equity
  • Appreciation
  • Leverage

All of the above are critical factors that the rich use successfully to build their wealth and which you can also use to make your wealth. Let us explain further why the property has been in the I.D.E.A.L investment class. Income – investing in property has allowed us to earn additional income regularly through collecting rent on the property(s). We use the rent to help pay off the monthly mortgage payments and expenses of the investment property(s). This and other benefits allow us to live a comfortable lifestyle while continuing our successful wealth-creation strategies. Our long-term plan is to pay down the mortgages and then use the rental income as disposable income to live off. Depreciation – another form of income that property investing provides us is tax deductions in the form of depreciation allowances. The Australian Taxation


Office allows property investors to depreciate the value of their investment properties and claim the amounts as tax deductions against the income. When we started investing in property, our strategy included purchasing new properties with high depreciation levels to utilize the tax benefits to sustain the investment property while it grew in value. Maximum depreciation benefits can generally be achieved from new properties; however, renovated older properties can also provide significant depreciation benefits. Depreciation schedules can be obtained from registered quality surveyors, while your accountant should be consulted for tax-deductible items on the agenda.

Equity – is why we invest in property. Equity can be defined as the amount a parcel has increased in value over time. For example, if you buy a property for $300k and after some time it grows in value to $400k, then the difference ($100k) is termed equity. Equity is great because you don’t have to work hard to get it. It just happens over time, even when you sleep. The increased equity can then be taken out and used as a deposit(s) to purchase additional investment properties to accelerate your wealth creation. This is basically how many of the well-known and successful property investors built their

As our properties grow in value, we use the equity to purchase more and more properties. Equity increased quickly as we bought more properties, accelerating our capacity to buy more properties. Each time a property increased in value, we would revalue the property and draw down the available equity to buy the next opportunity. Some of our properties have increased by 30%, yet had we tried to save this amount of money while working in the “rat race,” we would never have been able to buy more than one property. Equity has given us the power to purchase multiple properties concisely and grow our net wealth.

Appreciation – property values increase and decrease like any other investment vehicle; however, when you look at the property over the longer term, it generally always increases in value and, therefore, provides low-risk investing. We prefer property for this reason and put; people need somewhere to live. We have approximately 120k people migrating into this great country each year, and the size of our family units is reducing; hence, the requirement for more properties for people to live in is increasing. When buying an investment property, we look for areas experiencing population growth or are expected to grow in the longer term. Population growth helps ensure demand for property, and following the supply and demand principle, appreciation in property prices is highest in areas of greatest need. Our genuine wealth has come from our many properties appreciating over time.

In property investing terms, leverage can be defined as the ability to do more with less. Leverage is by far the most powerful feature in property investing and has become one of the world’s many wonders. Without it, we would still be trying to buy our first investment property. Leverage has allowed us to maximize what we have and to create serious wealth. Borrowing more on an investment property than what you paid for it is what leveraging is all about. How great is that? You can use someone else’s money, i.e., the banks, to grow wealth. Banks will lend you up to 80% of the property’s value and, in some cases, borrow more at competitive interest rates. The property allows more borrowing capacity than any other investment class because the banks view it as low risk.

Put more; you must put in less of your own money upfront when investing in property than you would if you were investing in any other investment class. This means that you will grow your portfolio much quicker because you will need less of your own money than you would with other asset classes. The more you can borrow at 7.5% interest, returning 15%, the wealthier you will get. If
you can at least double the return on what it costs you to own an investment property; then, you are ahead of the game and on your way to creating serious wealth.

How many other investment classes provide these compounding benefits? For us, the property is the I.D.E.A.L investment class. We don’t know of any other investment class that provides an income, allowing us to depreciate the assets’ value while watching the help appreciate. Appreciation of the support increases the equity, allowing us to gain maximum leverage by borrowing to purchase more property. Repeating the cycle again and again and again creates wealth at an ever-increasing rate. How good is that?


Alcohol scholar. Bacon fan. Internetaholic. Beer geek. Thinker. Coffee advocate. Reader. Have a strong interest in consulting about teddy bears in Nigeria. Spent 2001-2004 promoting glue in Pensacola, FL. My current pet project is testing the market for salsa in Las Vegas, NV. In 2008 I was getting to know birdhouses worldwide. Spent 2002-2008 buying and selling easy-bake-ovens in Bethesda, MD. Spent 2002-2009 marketing country music in the financial sector.