The psychological security of bricks and mortar

The world feels uncomfortably uncertain right now. We’ve been delivered blow after blow of upending news leaving many people psychologically punch drunk and staggering.

The troubles have been relentless – not just the pandemic but political upheaval, international conflict, economic challenges, living cost issues, supply chain hurdles, interest rate movements…

In an environment like this, we need an anchor. Something of substance with certainty and surety at its core. A foundation to feel all is right with the world.

That’s why I think property investment is an ideal vehicle for anyone looking to assure their financial future during the turmoil.

Here are five reasons why bricks and mortar deliver the security we crave in these uncertain times.

 

  1. Tangibility

One of the reasons Aussies love investing in property is that it’s a physical asset.

There’s no denying the emotional boost this gives its owners. The ability to view your investment and see it working for you is a psychological lift for many.

Real estate also delivers something meaningful to the community at large – it provides shelter. The property’s secure and consistent performance as an investment is founded on this purpose. So long as you select the right property for the right reasons, there will be demand for what it does from both renters and future buyers.

 

  1. Consistent positive performance

For decades, well-chosen property investments have proved one thing – they can deliver consistent positive results to their owners.

Strategies built around property price cycles exist because they’ve been confirmed time and again throughout history. Investment-grade real estate can achieve average capital gains in the six to 10 per cent range decade after decade. Property values in the right locations can double every seven to ten years, and rental returns at four to five per cent are incredibly reliable.

These dependable results allow people to invest with confidence for the long term.

It’s the perfect antidote to something like crypto which in 2022 has seen huge swathes of value wiped out in days. I’m certain many crypto investors who were once basking in their rising wealth now wish they’d chosen to park at least a little money in something as safe as real estate.

 

  1. Easy to understand

Homeownership is a rite of passage in this country. It’s so founded in our psyche that we coined the term the Great Australian Dream to describe it.

That’s why property investment fills us with confidence. We know how it works. We comprehend what makes for a good home, how a property manager operates and what our responsibilities are as landlords.

Ask the average Aussie about derivatives, stocks, margin calls and hedge funds and most would scratch their heads and admit they simply don’t know what these things are.

But property – we all get that.

 

  1. Help is on hand

One of the great things about the property sector is that there’s now a range of professionals available to help everyday investors.

From property investment advisors to buyers’ agents, conveyancers, building and pest inspectors, town planners… you name it and just about every type of assistance you might need stands ready and able at the end of the phone.

The key is choosing the right type of advisors. You need to seek professionals who have your best interests at heart. They need the experience and qualifications to deliver the best possible guidance for your personal circumstances.

 

  1. Proven fundamentals

Property has measurable fundamentals that mitigate investment risks and boost potential upsides. By understanding the metrics that measure those foundational tenets, you can select great assets with an excellent degree of certainty.

For example, it’s important that there’s an appropriate population density within reasonable proximity of your investment property. This bolsters the demand side of the value equation. Also, there are ways to measure a location’s future desirability. Looking at suburban metrics such as the percentage of owner-occupiers vs. renters, the dominant professions in the community, and the number of cars per household can all tell you a story.

Then there are the fundamentals of the property itself. A certain calibre of construction that will appeal to the main resident type in an area helps ensure the layout and style of property will bring in the tenants. Then there’s ready access to transport options, employment hubs, and other services and facilities.

All these things can be measured and will point you in the right direction for a stronger investment option.

 

So don’t flounder in the darkness of uncertainty. If you’re looking for a safe harbour during these tumultuous times, real estate investment is the answer. It’s solid, reliable, dependable, secure and has a tangible benefit to many people making it an investment vehicle you can anchor to.

Always review any property location research and investment analysis data, with a professional, QPIA (PIPA Member) qualified & accredited ASPIRE Property Advisor Network Advisor. Never rely on glossy sales brochures or property marketing information, ensuring a property is right for your strategy. Property Investing is about BUYING a property that matches your goals and aligns with your investment strategy, never be SOLD an investment, know your numbers!

Visit www.aspirenetwork.com.au or call our office to be connected with an accredited and independent Property Investment Advisor on 1300 710 933

Related Articles

Dealing with a low bank valuation

Dealing with a low bank valuation

I came across an incredible story recently while talking to one of our advisors. He’d helped a client put an excellent new-build investment under contract and had just received the bank valuation back from the financier. It had come in $70,000 below the contract price...

read more
Will interest rates kill the market?

Will interest rates kill the market?

Australians are an interesting lot. When it comes to important issues deliberated around the kitchen table, there are some tried and true discussion starters. It could be about the effectiveness of our political leaders, or which sporting franchise is up the...

read more
My top 12 tips for property investors

My top 12 tips for property investors

Property investment is seen by many people as a DIY path to financial security. We’ve all pretty much bought or sold a home, been a tenant or dabbled in investment, so most Australians feel capable of trading real estate. For this reason, plenty also believe investing...

read more