Kickstart The Festive Season In Margaret River, WA It’s that time of the year again when...
Why buying rental property in Hobart makes so much sense
As any smart investor knows, having some exposure to property investments is important in structuring a balanced portfolio. Most people see property investment as a buy-and sell arrangement. You buy the property. With luck, the rental covers the mortgage, and in a few years, you sell it for more than you bought it.
That’s certainly one of the models you can look at. But there are a lot of reasons why hanging onto that rental property after the mortgage is paid and the property value has risen makes sense.
It’s a tangible asset
Although property values may rise and fall, one thing remains unchanged: you own a property. The fluctuations in the housing market tend to even out in the end, but even when times are tough, your ownership is indisputable. And though property values may fluctuate, your rental income won’t follow suit. If you really do want to sell, you can wait things out. The property market will recover. If you’re in it for the long-term, it won’t bother you in the slightest.
If you already own shares, you’ll know that income is hard to predict. Dividends will vary, and there will be times when shareholders get nothing. For a predictable and reliable income, there’s no beating rental property. Of course, if you plan to manage it yourself, you’re likely to find that there’s a whole lot of work involved too – but a property management company can lift this burden from your shoulders.
Good return on investment
When we buy property, most of us must go into the red to do so. But since you’ll presumably compare your mortgage repayments to your potential rental income and choose a property where rent exceeds repayments, very little of your own money goes into buying the property. Instead, you get to keep at least part of the rental as a supplement to your regular income while your investment pays for itself.
Low risks from rental property in Hobart
All investments are risky, but some are safer than others. Property investments are relatively low-risk. After all, you can insure the building in case the worst happens, and even if it does, you still own the land. In places like Hobart, there’ll never be a shortage of buyers – so if you decide the time has come to sell up, you should be able to command a good price. Compare this to investing in a private company that could cease to exist. In a worst-case-scenario, you could end up with nothing to show for your investment.
Demand never stops
Sure, if the property is in some industrial backwater, you might struggle to get tenants or buyers. But at Baxton, we’re talking about Hobart. Everybody needs to live somewhere, but if they could choose, Hobart has to be one of the nicest places to live in Australia if not the world. In all the years we’ve managed properties in Hobart, we’ve never seen demand drop to a point where there would be cause for concern. Our high occupancy rates are proof of that.
Keep pace with inflation
When inflation rises without a matching increase in income, you end up poorer. But rental is one of the things that keeps up with inflation. As the cost of living rises, so does the cost of renting. That may not be good news for your tenants, but as a property owner, it’s good news for you.
Extra retirement income
You thought you’d made provision for your retirement. Think again. Research suggests that most Australians will find that their retirement income doesn’t go as far as they thought it would. But with a good rental property to your name, you have far less to worry about. Your income will keep pace with inflation, and a good property in Hobart is sure to command excellent returns throughout your retirement.
Property management company has the answers
Rental property in Hobart is a great investment in your future. If you’d like to know more details, why not talk to us? As property managers, we take care of your investment – and our experience will give you the facts and figures you want to see before you take the plunge. The bottom line? Rental property in Hobart is a great investment, and if you let us do all the hard work, it’s a passive investment too. Relax and get great returns. What could be better?
Written and syndicated by
– Baxton Media.
- Property Owners’ Tax: How do I claim on borrowing expenses?
- Rental property tax: Interest, land tax and other deductibles
- 6 things you can claim to maximise tax savings
We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
See more articles below
You May Also Like
Eye Health: Why it’s Important to Get Enough of the Right Kind of Sleep Anyone who’s...
What to Look For When Replacing Tyres In today’s world, cost is probably the first issue...