One of the biggest reasons to choose property over shares is that you can always add value to your property.
The average person cannot do that with any other asset class.
Here is a quick Case Study:
One of our Directors recently bought a house in Yarraville, only a few kilometers from the Melbourne CBD. This suburb is a proven performer and is well on the way, in terms of gentrification.
The property was 3 bedroom, 1 bathroom, 2 car home purchased for $690,000.
Renovations were undertaken to add another bathroom and bedroom at the cost of $85,000.
After renovation costs, it would be fair to say that he increased the value of his property by $100,000.
The primary purpose is to widen the asset base faster, rather than relying on the market.
Secondary benefits include :
- Adding additional rental income
- Finding a better quality tenant
- Increased depreciation
When markets are turbulent and uncertain, the ability to add value to your assets can never be underestimated- it is your TRUMP CARD
Want to know more about Self Managing your Property Investments?
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