Why Traditional Investments Can’t Keep Up With Real Estate

You’ve done it. You’ve found the golden goose. A stock almost guaranteed to make you a pile of money. It’s a tech company that has designed an innovative, faster chip that will open up new possibilities for artificial intelligence. They have a strong balance sheet, high revenue growth, and positive cash flow.

The market hasn’t yet caught wind of this remarkable enterprise, leaving shares severely underpriced. This is the opportunity of a lifetime and you decide to pull the trigger.

For the first few months, things are great. The stock price doubles and you boast among friends of your sleuth-like investing skills. But then, a competitor creates an even better chip. The company that seemed to be the sure bet simply can’t keep up. Stock prices plummet. You watch frantically as the company freefalls. How much are you going to lose? When should you cut your losses?

While extreme, this scenario is always on the back of every stock investors mind. You’ll always have flops and you’ll always have winners. That’s just the name of the game. But to actually generate real wealth from shares, you need to pick great companies consistently. Not just companies that provide a positive return. You need companies that can consistently outpace inflation as well. If you don’t pick enough winners, inflation will eat away at your returns and leave you with nothing.

The pressure is even higher for financial professionals and wealth managers. Clients demand safe investments that deliver consistent returns over the long term. If clients are unhappy with performance, they take their money elsewhere. With the volatility of traditional investments, it’s no wonder that more and more financial professionals are turning to property.

Maybe you should too.

The Benefits of Property Investing

Property has proved a consistent, complementary form of income for both investors and wealth managers alike. It helps protect a portfolio from the wild fluctuations of traditional markets while still offering the ability to generate positive cashflow. Investing in property provides investors with seven key benefits:

1. Leverage

Unlike traditional investments, banks are willing to loan money for investment property. Its stable nature gives banks confidence in the security offered by the underlying asset. It’s one of the only investment vehicles where individuals can use lending to build their portfolio and achieve higher realised returns.

At CityYield, we can refer investors in Australia and Hong Kong to lending institutions which offer interest-only loans with rates from just 2.99%. In most cases these loans can even be used to finance property outside an investors home country, including property in the United States and United Kingdom.

2. Tax Benefits

Property investors receive a multitude of tax benefits ranging from country to country. In Australia, negative gearing can be applied to both local and foreign property investments. You will want to check with your tax advisor but it’s very likely that tax benefits could help subsidise a portion of your initial outlay.

3. Passive Income

Passive income is the primary reason that people are drawn to property investing. Rental units, unlike stock dividends, provide a reliable monthly income stream from tenants. Even during times of economic turbulence, the need for housing won’t disappear.

In most cases, investors can earn positive cashflow immediately while they also build equity in the investment.

4. Tangible Asset

Property is a tangible asset. It’s an investment that you can physically see and touch. Even more importantly, it has your name on the deed and cannot be misplaced or stolen. Unlike other alternatives, you can take comfort in knowing that you own something of actual value and not just a piece of paper.

5. Guard Against Inflation

Regardless of market fluctuations, property has traditionally increased at a rate exceeding inflation. Property traditionally grows annually at 7-10%, roughly two to three times inflation.

6. High Growth Potential

With expanding population, increased urbanisation and growing economy, home builders and contractors are having a hard time keeping up. The limited supply and heightened demand for property in major markets has caused a spike in both rental yields and property values. In fact, property investments have been the greatest source of individual wealth generation over the past 50 years.

7. Diversification

Perhaps one of the most important benefits, real estate is a proven, profitable way to diversify your portfolio. Real estate protects wealth against currency manipulation, market crashes, and political changes.

Choosing Your Market

Investing in property is a great opportunity, but investing without a plan can be disastrous. Do you invest where you live or somewhere else? Which has the best potential for returns? What kind of research do you need to do first?

The problem that most property investors encounter is a lack of viable options. There may be local investment opportunities, but the returns are minimal. Looking at other cities can seem compelling, but to do it yourself is a daunting process.What should you look for? Who will handle maintenance?Who will collect the rent?

That’s where we come in.

At CityYield, we help investors make money by building portfolios of international property. By working with our expert team, investors can find, purchase and manage property outside their local market with ease. Let us help you with:

Identifying The Best Markets For Investment

The CityYield team is always on the lookout for leading property markets worldwide. Each year, tens of thousands of properties are evaluated across nearly 300 different markets around the world.

Building High Yield Property Portfolio

One of the biggest issues with local markets today are the record low yields. In Sydney and Hong Kong yields have dipped below 3%, barely keeping up with inflation. When looking internationally, you are able to achieve yields that are often 2-3 times higher than an investor’s local market.

Simplifying Purchase & Ownership

CityYield makes it easier than ever to invest in property. You can access an international pool of property without worrying about the nuances of the local market. We handle everything, from start to finish, including:

  • Location Analysis
  • Due Diligence Property Reports
  • Yield & Growth Projections
  • Legal, Regulatory & Tax Advice
  • Rent Analysis & Comparison
  • Management & Maintenance Support
  • Financing Introductions

To discover how to start building a better balanced and more diverse portfolio, let us share our opportunities with you today. Schedule a free callback with one of our property experts to ensure your portfolio is headed in the right direction.

Click here to schedule now.

* https://www.usatoday.com/story/money/personalfinance/columnist/2018/05/24/real-estate-heres-how-much-you-can-expect-earn-landlord/618206002/
* https://www.gurufocus.com/news/686876/looking-to-diversify-rental-properties-make-great-investments
* https://www.entrepreneur.com/article/312614

How can you build a better property portfolio?

Learn more about CityYield’s disruptive strategy.

Speak with a CityYield expert to ensure your property portfolio is headed in the right direction. You will learn how CityYield offers a new approach to property investment. An approach that will protect your wealth and put more money in your profit.

Don’t miss this opportunity. Call +61 2 9239 3244 or schedule a callback:

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