Re: investment property is it a good idea
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I have said this to many people . Property investment is a long term investment
7 to 10 years if you are looking to get a good return via capital gain. It also provides some good tax reductions which can be used to off set your existing mortgage on the home you live in
With regards to the market crashing , we have seen this happen before but what people forget is that it has always recovered. Besides this only affects you if you want to sell as cashed up investors want to buy when the market is down as they know it will always recover
You only have to look at historical data to see this is true
By keeping the investment long term it also provides you with an income in retirement with the bonus of the continuous increase in capital gain for doing nothing, you can sell off any time you want and do what ever you want with the money, maybe by an XY GT lol
In 1992 I sold the first house I ever bought a 12 sq 3 bedroom for $96,000 I paid $75,000 4 years earlier. Fast forward 25 years and thanks to capital gain I'm now living in a 50sq + home on a half an acre in suburban Melbourne worth well over million . I'm not a savy property investor, capital gain did all the work for me.
The only thing investors need to worry about is if the government change the ruling on negative gearing as that will negate the tax benefits
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