Investing in Adelaide real estate has been lucrative for many property owners, not just during the boom of the past couple of years, but historically.
Property investing is something many people turn to when looking for ways to minimise risk and volatility while maximising the potential for long term asset growth. Building a portfolio of residential rental properties is one way to invest in Adelaide real estate, but there are more ways to generate wealth through property investing.
Real Estate Investment Trusts (REITs)
Real estate investment trusts own and manage properties with income generation. These could be residential apartment blocks or commercial real estate buildings such as shopping centres, office buildings or hotels.
When you purchase a share in a REIT you acquire a diversified portfolio of properties and earn a portion of the income they generate. This is a great option for a time-poor property investor.
House Flipping
Renovating and flipping properties is more lucrative for property buyers with a relevant set of skills, but is still suitable for buyers who don’t own a tool belt. To make a good return through house flipping you do need good market knowledge and capital to get started.
Those with a good eye for a bargain in the right location can make a profit through house flipping, while renovators with upfront capital to spend and a good understanding of how best to capitalise on a property’s features, can do the same.
Investing in ASX property stocks
When you invest in property stocks you are reducing risk by spreading your investment across a range of real estate assets. Property stocks include residential, commercial, industrial and retail properties.
The benefits of investing in real estate through the stock market include regular dividend payments bringing a reliable income source, and easy liquidity. It is much quicker and easier to sell property stocks than physical real estate, should the need arise.
Property stocks can also appreciate and provide long term capital growth.
Rental Properties
Of course rental properties in Adelaide do provide investors with short and long term gains from rental income and asset appreciation. With vacancy rates remaining low, a rental property in Adelaide is a reasonably reliable source of income and a good option if you have a deposit saved and funds available for maintenance and repairs.
You have the option to manage the tenancy yourself if you have the time or to hire a professional property manager, with the property management fees being a tax deductible expense.
Some of the benefits include tax deductions, asset appreciation, regular income and the ability to leverage off one investment property to buy another.
