The future is uncertain for many of us here in Australia but you still need to do whatever you can to create wealth so that you can retire when retirement age comes around or maybe even before that point. We are told by financial advisers to invest in many different things but a lot of them come with a high level of risk and we can’t afford to jeopardise our life savings and our salaries into something that might go bust next week. People are looking for something a lot more secure and they want to be able to look at past results to provide themselves with peace of mind.
This is why many people are investing in property and particularly build to rent Australia because it is evident that property prices continue to rise year on year and so you get to take advantage of this in 20 to 25 years time but for now, you can rent out the property and always be receiving income that you can reinvest in other properties or spend on something else. If you’ve never really considered the build to rent option then the following are just some of the benefits of using it to create wealth for yourself.
- You enjoy passive income – As was touched on briefly before, your property that you are renting out is creating income for you on a weekly or monthly basis. Once you can get the right kind of tenant into your property then you’re more or less guaranteed money for the next 5 to 10 years without having to do anything else. All the while, the property will be increasing in value over time and the demand for rental properties will continue to rise as well all across Australia.
- You can enjoy higher rents – The modern tenant has needs and wants that they expect you to meet and so if you make sure that your property has every modern convenience and amenity that anyone would want then you will have no problems renting the property out for higher prices. If you take care of your tenants then they will reward you by staying longer in your building and they will make sure that they keep the property in great condition.
- You save money on maintenance – Due to the fact that you will be building a new property, the likelihood of anything going wrong within the first five years is quite small. As long as you talk to the building contractor so that he uses top quality materials and energy efficient methods to allow the property to retain heat in the winter and to remain cool in the summer then your maintenance and operational costs will be very low.
As well as earning you passive income, you can also take advantage of many tax deductions that the Australian government offers. You can claim on the depreciation of the building, on the mortgage interest and any other property taxes that are incurred.