Owning investment property may provide financial and personal benefits, including:
Rent. If your investment property is close to schools, transport – particularly for commuters, employment opportunities, local businesses for example, public facilities like libraries, etc., shopping and are places where there is a pleasant lifestyle, tenants may well be attracted and could create cash flow for you.
Ongoing income and source of cash flow. Your investment property may provide ongoing income to offset your expenses.
Potential tax benefits. Mortgage, home equity interest payments and property taxes and depreciation may present the opportunity for tax advantages. Of course you will need to consult your tax adviser on this.
Capital Growth. The increase in value of properties over time. Melbourne and Sydney, in particular, have had periods of growth and property values have, in some cases, doubled over a relatively short period of time.
Capital growth largely depends on where and what you buy. Historically real estate experiences steady growth over the long term and following the fundamentals is a proven strategy to achieve growth.