The media love to bash property investors. Why? Because whether they are domestic or international, it's very easy to sell newspapers by painting a picture of "rich property investors" as the catalyst for allegedly unaffordable property prices. The reality is, however, that most property investors are hard working, Australian Mums and Dads who are just doing the right thing by taking action to protect their family's future. More importantly, they are crucial to the Australian infrastructure framework that our government simply cannot do without, and here's why.
Have you ever seen the famous "Uncle Sam" image that the Americans used in the early 1800s? This infamous picture of a mature, bearded, stately man pointing a boney finger at the people of America, proclaiming how "We Need You" to do your patriotic duty. This was an attempt to drive recruitment for the US army and was a powerful and iconic message to the people.
It was timely then, and in many ways now it reminds me of how our government must view Australian Property investors. Ever since Australia first had the need to satisfy rising housing demand some two hundred years ago, Australian governmentshave found themselves in the precarious position of attempting to answer the question "How do we provide enough affordable accommodation?". The government has not had the capacity to create enough housing for it's citizens. This is not suprising when you consider that Australia has become the fastest-growing population in the developed world.
DID YOU KNOW?
The percentage of Australian residential dwellings that are funded by governments has shrunk to 2.9 per cent per year.
In fact, according to the Australian Tax Office, almost one in three of all Australian residential properties are owned by investors.
It's for this exact reason that the federal government decided to create advantages and initiatives to further stimulate and encourage property investment from the general public. The most well known of these is negative gearing, as well as in more recent years the development of purchasing property within a Self Managed Super Fund.
The whole idea of these schemes and incentives is to obviously increase the returns for investors, and thus attract new investors to maintain the ever growing demand for quality and affordable housing. Historically this has been successful.
The real danger for investors, however, is to see these incentives and think that Property Investing is as easy as pie, where anyone can just by any old property and watch the money start rolling in.
This couldn't be further from the truth, as it takes hours upon hours of research, experience to know exactly what to look for and what potential pitfalls there may be, as well a dedicated team to give these hard working Mum and Dad investors the best possible chance at investing success.
We've seen countless investors go out on their own over the years, get caught up in the hype created by a well funded marketing team, only to have their fingers burnt in the end.
Over my 25 year property investing career I feel my team and I have virtually seen it all, and through our strict criteria for property investing we can boast a 100% success rate in selecting growth markets all around the country.
The good news for Mum and Dad property investors is that they are not on their own, as my team and I are more than happy to lend a helping hand and assist them on their journey like never before.