reasons why i like property7 Reasons why I like Investing in Property

Reason # 1 – You can Add-value

You can buy a rundown old property and increase its value by getting your hands dirty (or paying someone else to)! It’s hard to add-value to my Commonwealth Bank shares. Sure I bank with them but I don’t think my savings account is going to affect the share price! Depreciation Calculator

Reason # 2 – Limited Supply

Property takes a while to plan and build. The demand and supply equation has lots to do with the price of property. With shares, the company can do a capital raising at any time or issue options, this may dilute your shareholding and its value.

Reason # 3 – Capital Gains Exemption

Unlike any shares I currently own, the home I live in does not attract capital gains tax. This has been lucrative for many Australians and I can’t see the law changing in this regard any time soon.

Reason # 4 – Keep it Simple Stupid (KISS)

Property is easier for me to understand in comparison to shares. Granted I work in property, but I know if I buy a property for $500,000, I can get $500 a week rent and comfortably work out other expenses. Share prospectuses and annual reports are usually not as straightforward.

Reason # 5 – Master of my Domain Depreciation Quote Schedule

I’m the CFO of my property investment and answerable to the board directors that I care about, my wife. I don’t know about you, but I’m pretty sick of golden handshakes to CEO’s and directors that pretend they have shareholder value at heart. Really?

Reason # 6 – Don’t remind me

I like property because I’m not reminded of how much I have lost or made every day. I don’t want to wake up and wonder what the NASDAQ did overnight and what my share portfolio might look like at market open.

Reason # 7 – Margin Calls Stink!

Even if my property has gone down in value, which it hasn’t, it’s very unlikely a bank will make a “margin call” and force you to sell. Margin calls can be unsettling, as it may force you to either come up with cash quickly or sell stocks at a time when you don’t want to.
Give me property any day!

About Tyron Hyde

Tyron Hyde is the CEO of Washington Brown Quantity Surveyors. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences.

Learn why more Property Investors Choose Washington Brown to prepare their depreciation reports.