Is property ownership the best path to build wealth?

May 29, 2017
Caroline Jean-Baptiste

This is the million dollar question. Unfortunately there are three answers. Yes, no and sometimes.

Yes, it is definitely a great vehicle to use to build wealth - if you buy well, in an area that has increasing property values and high demand for housing.

No, if you buy more than you can afford, in an area that is oversupplied and you have a short term plan for owning the property.

Sometimes - see the two responses above.

The thing about property is that you need to buy it with a bit of a plan. Will it be your home or an investment to rent out? How long do you plan on keeping it? Will you be renovating, demolishing and rebuilding or enjoying it as is? 

What's going on in the neighbourhood? Are there a lot of properties already for sale or plans for development or infrastructure upgrades? Is the area well supported with existing infrastructure like transport, schools, shops etc.

What are your circumstances? Are you planning on quitting your job and starting your own business or starting a family? Are you pretty certain that you will have the ability to pay the mortgage for the foreseeable future?

These are all things that need to be explored before you buy, and they're things that we're happy to discuss with you to help you make a great decision.

Whether property ownership is the BEST path to build wealth, all things being equal, we think it is. 

People will always need a roof over their head, so we'll always prefer bricks and mortar as an investment option.

If we can help, please call, email or drop in to see us in Fortitude Valley. We'd love to help you get on your way to creating security and building wealth through property ownership.

Caroline

 

Posted in: Home loans

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