Property Investment Making a Comeback

Property investment seems to be picking up again now that the economy has settled and become more stable. According to the Australian Bureau of Statistics, investors are applying for 45% of all home loan dollars. This is no surprise given that home loans are currently being offered with low rates of interest.

Property investment can be fantastic for generating wealth, but finance expert Paul Clitheroe warned that people need to take care investing in the market.

According to Clitheroe, purchase and sale costs are a key consideration that some people neglect to consider. These fees can reach as high as 5% for purchases and 4% for sales, which effectively means that buyers need to see a 9% appreciation before they begin to make a profit on the property.

Increased investment is certainly positive for the Australian housing market, but it is essential that people crunch the numbers to ensure that they are making a smart investment for the long-term.

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