Common Advantages & Disadvantages Of Investing In A Property

Gabriella Leakey   April 30, 2015   Comments Off on Common Advantages & Disadvantages Of Investing In A Property

Most real estate investors are overwhelmed with the amount of money they can bag in just one transaction and this often cloud their judgement from the good and bad investment decision they make. They are many advantages and disadvantages of property investment in QLD that is the reason on why investing is not for everyone. 
Advantages of Property Investment:• They are countries that can obtain a wide range of tax concessions which includes a deduction of interest payments and reduction of fixtures. If the property is new, the payment reduction might be large. The tax concessions available for property investors have a great relation with the investor’s income and the rent they receive annually.
• Property investment is perfect for regular cash flow; it can return both the capital growth and the rent received each week. The rent they attain weekly offset the loan repayments for any negative investments and it also provide an additional cash flow for a property that is positively geared. This cash flow is only guaranteed for those properties that have a long term tenants that are good in paying and with low vacancy rates.
• Most investors, mostly like to feel attached with their investment, they mostly want to feel and see the property they invested in. They can feel comfortable with the physical property for them to say that they are thoroughly attached.
Disadvantages of Property Investment:• For those who have property investment, they should be ready for the length of time they have to wait for the property to be sold especially if they are facing any financial hardships. Some properties that are located in a good area may take a long time to be sold, except if the owner decides to sell the property in a lower price.
• They are instances that the property may not be able to be rented straight away, they will need to find some time to look for tenants and in this case they have to pay for extra funds to cover up all the expenses, such as property maintenance and repayments.
• In property investments, tenants usually move out after they have already finished a contract and it normally takes time before a new tenant arrives. As a result, the property owner will have a short income for the period and they may need to cover the difference between rental incomes less the payments for the mortgage.
• With property income, the property value increase, but it can also decrease depending on the real estate market. Because during financial crisis most investors are facing major financial difficulties because they are spending all their funds in the property they invested with and it cannot be sold in a lower or it cannot be sold at all.
• Property investment has a high purchasing value than other types of investment available in the real estate market. For those who are still planning to enter this type of business, they need to ensure that they are ready to face all its downfall and benefits as a part of the game of the real estate