Why Real Estate Part One

There are tons and tons of ways to invest your money, may it be shares, bonds, commodities or just simply  leaving it in the bank, but why is real estate still such a hot pick.

Today we will mainly be going through the Advantages Of Real Estate.

• Tangible
• Real Estate is one of the type of investment where you could actually see and touch what you buy compared to shares and others where you only get a piece of paper.
• Passive income
• Rental Income will be steady monthly income that you receive which provides you with liquidity without having to sell your investment, where as shares you only get income once a few months if lucky.
• Grow in Value
• The potential of property growing over the years 
• Could Choose to live in it
• give you the freedom of either leasing it out for the passive income, or to live in your self so you wont be paying rent. you could even lease it out now and live in it in the future.
• Pass down to next generations
• In Australia, once you buy the land it will always be yours, unlike in china ans some other countries where there is a time limit to it, and after the time expires it is returned to the government. thus it could be passed down to the future generations and provide for their stable living.
• Less volatile 
• Property is one of the more stable investments where the price doesn't fluctuate too rapidly unlike share prices where you could lose thousands in a nights time.
• Negative gearing 
• Currently Australia allows you to deduct tax for the amount of interest you paid on mortgage for the property as well as other maintenance and expenses regarding the property, thus giving a tax advantages, meaning more money is kept in the pocket.
•  Tenant will repay the mortgage for you
• When the tenant pays you rent, the amount could be used to partially or completely cover for your interest payment, and if your lucky you could even have extra left over. with this concept your tenant will basically be paying off the property for you and in the future when you sell the property after it has grown in value, you would have more return than as to paying it off your self.

Intro

Just a brief introduction of my self, you can all call me Henry, and yes I AM working in the Real Estate Industry and this blog is everything that ranges from Real Estate news, tips strategies to how the Market is actually preforming, so people who are interested in property will find this Worth while following.

Lets just start off with some really recent news of the RBA cash rate.

just a brief explanation of the cash rate from the net:

1. The cash rate is the interest rate charged on overnight loans between banks. Australia uses an explicit inflation target, which in the past has been around 2 to 3 percent a year.

So basically it is how much your money is worth, many who are new to this would ask what does this have to do with Real estate? well they are actually closely related.

Lets put it this way, for the majority of buyers, where do you get your fund from to buy property? Like most people, we get it from the bank through a mortgage, and how do the bank gain profit from the mortgage? Its through the interest rate. and Cash Rate is basically determines what the interest rate the Bank charges, which will affect how much you will repay them over the years and your monthly repayments.

SO the latest news is that the RBA has Decided to hold the rate at 2.0%, for those who do not know who RBA is, RBA stands for Reserve Bank of Australia and they the Government sector that is responsible for Deciding on issues such as cash rate and other services that we will cover in the future.

With the Cash rate at the lowest in decades, So if we look purely at that factor then now is the BEST time to Buy.