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Have you built your savings to $100,000 or over beyond your living expenses and thinking of investing and making a fixed return on your investment in Australia on a regular basis for long-term financial goals or for your retirement. The motive of this blog is to give you some of the most direct and key options available in Australia that will help you invest and secure your future.
Safest Investment Choices in Australia
There is a couple of safe investment options, such as bonds and passive income sources like ETFs, dividend-paying equities, or a well performing rental property. Government issues bonds, which are regarded as low-risk assets, are the safest investment choice for Australians. These government-issued bonds are supported by the government’s complete trust and credit. Cash and term deposits, which guarantee a return on your investment but may yield lesser returns over time than other investments, are two additional safe investing possibilities.
However, we would like to narrow it down to everything that you need to know about some hidden property development projects and multiple investment choices that are out there around investing in properties that will yield you high returns and still be considered relatively risk-free.
Direct Property Investments
Let’s have a look at why a property can be a good investment option for Australians looking to generate monthly returns and build a steady passive income. Here are the reasons below.
Potential for capital gains
Since property values have a propensity to rise over time, investors may benefit by purchasing real estate at a discount and reselling it at a profit. This can result in sizable capital gains for investors, especially if they own the property for a long time.
Consistent Rental Income
Investing in real estate can also generate a stream of consistent rental income that investors can use to reduce their mortgage debt or generate extra income. Rents often rise in line with inflation, thus the rental income might likewise climb with time.
Tax Advantages
Investing in real estate may offer tax advantages, such as deductions for interest costs, depreciation, and other costs related to holding an investment property. Investors’ taxable income can be decreased, and their after-tax returns can be increased because of these tax advantages.
Leverage
By borrowing money to buy multiple properties, real estate can be leveraged to raise the possible return on investment.
Risks Involved in Buying an Investment Property in Australia
It is so important to do your research on various suburbs and their growth potential before buying an investment property. Some suburbs may have had a history of consistent growth but may have reached its peak. In this case, it is important to check the suburb’s current sale prices and also its current rental returns and see if it makes sense before investing.
Here is a list of the fastest growing suburbs across regional Australia according to open agent.
Research on Regional Suburbs to Maximize Growth
Alternatively, there could be pockets of suburbs all over Australia that are just about to grow because there is so much activity happening around those localities. For example, a suburb through government and private investors is building all the infrastructure required for it to have some serious growth such as schools, universities, sporting facilities, roads, train networks, and other transport options.
Here is an article from ABC which gives a clear indication of how people are flocking to regional suburbs across Australia.
If you dig deep into a particular suburb that might have some growth potential, you will even see new houses being built, blocks of land being sold at record prices, new businesses popping up everywhere including modern shopping centers, cafes, restaurants, etc.
There are greater risks and costs involved with borrowing and investing in a property. With all the negative news about interest rates rising in the last 6 months in the Australian property market, you might think bonds could be a safer and cheaper alternative. However, with proper guidance and research, real estate investment in the long term can increase your profits from capital gains and rental income.
Seasoned investors cashing in on indirect property investment option
While this is indeed true for many, investors require a certain degree of industry knowledge, skill, and luck to realize their real estate goals. The Australian market has many experienced property investors, landlords, and professional developers, and for some, the sector can appear saturated and confusing when considering investing in a property. This is where investing in a development project works way better than buying a property.
Here is how property development investment works
There are property developers across Australia that are developing infrastructure required for a development. In most cases, they are in the infant stage of their development and would need a lot of private investment to develop the project. During this stage, they offer a significant return on investment to potential investors. There are so many such developments across our beautiful country and may land us in real trouble if we invested in the wrong project.
Advantages of Indirect Property Investments
- Indirect property investment has a number of advantages when compared to direct property investment, including:
- Lower up-front capital investment
- No stamp duty costs
- No repayment in interest
- Reduction in maintenance and fees involved such as plumbing, electrical work, gardening that goes into managing a property
- Lesser capital loss if the investment does not work out.
What Can An Investor Do To Get This Right?
Experienced and sophisticated Australian investors know the exact suburbs that are booming since they are extensively researching through their own network. So, when doing your research, look more towards regional Australia because this has been the trend ever since COVID, and this seems to be the way to go. Look for opportunities where a significant portion of the land has already been sold and see the price growth that it has had over a period of time. This is often an indication that the location has been growing steadily.
Fixed Investment Opportunity with Star Investment
Going with the theme from the above data, Star Investment is now offering a 12% return on your investment paid monthly plus a 10% capital growth on your investment on a five-year term. With Star Investment, your investment goes towards a waterfront development project in Moe, Gippsland, Victoria.
What has the waterfront development project @ Lake Narracan achieved so far
The Lake Narracan Resort Development project has seen massive growth in the last couple of years, including sales skyrocketing and reaching $23 million dollars, $125 million in GDV, and with 70% in Stage (1-6) now sold out, there is no looking back.
Why is investing with Star Investment risk-free?
Your capital is 100% safe and secure, with $5.7 million dollars raised in investments. Star Investment is an SMSF approved business and your direct investment partner, which means you receive all the benefits. There is a fixed return of 12% per annum paid monthly and paid on the 1st of every month.
Our Final Thoughts
You may work towards accumulating long-term wealth and reaching your financial objectives with the appropriate direction and a disciplined strategy. Before making any investment decisions, it’s crucial to get crucial financial guidance to learn about generating sustainable passive income in Australia. Whether you are an avid investor or a first-time potential investor looking for the best investment opportunities out there, you know that investing can be a valuable tool, and it is important to take the time to explore and research what’s out there in the Australian investment market today, and we hope that this blog will guide you in the right direction and help you make the right investment decisions.
Investments Come With No Guarantees
It’s essential to acknowledge that no investment comes without risk, and even so-called safe investments carry their own set of risks. For instance, the inflation rate may rise over time, causing the buying power of even the most secure savings to diminish. It’s important to note that the information and advice provided here are general in nature and should not be considered a substitute for independent financial advice. It’s recommended that readers seek expert advice before making their financial decisions and investments.
