Property is the best investment you can make right now, when compared to other types of investments, such as shares.

Many investors are not aware that they can in fact use their super to invest! Changes in the law mean it is now feasible for investors to use their self-managed super fund for the purpose of property investment. This is an incredibly tax effective strategy to use – just 10% on the sale, and nothing if over the age of 60! However, the rules can be complex so seek advice before you start.

Your pool of buyers is larger than just investors – who buy an asset to make money in the short or long term. Investors are in fact the minority of buyers, with homeowners accounting for 70% of the market.  Those who purchase property with the intent of living in it buy with many different reasons in mind – such as proximity to amenities, or even an obscure feature that your investment happens to have. This means that there is a greater opportunity for your investment to sell, even if the market is not great.

Due to an increasing population, particularly in Queensland, demand is outstripping supply for property. The State Government has recognised this problem, and introduced a one-off incentive for investors of new property ($10,000, expiring on 31 January) to stimulate the building industry and cater for a growing population.  This said, there will always be demand for rental homes, as well as property to buy.

These are just some of the reasons why investment in property will always be the best investment you can make.

Over the next few blog posts, I thought it would be a good exercise to note some reasons why property is the best investment you can make right now, when compared to other types of investments, such as shares.

Firstly, I wanted to point out that it is comparably easy to get finance for property. Home loans are a major part of any bank’s business model, and are therefore much more likely to lend for the purpose of residential property, over any other type of asset class.

A fantastic and unique advantage of buying property is that the price is always negotiable, particularly if you work with a Buyer’s Agent like Grow Consulting Group who will negotiate on your behalf.  Off-the-plan purchases have the added option of other valuable additions that can be included as a bonus, from an extra car space to premium appliances and air conditioning. With the right knowledge and expert partners on your team, you can negotiate a great price with added benefits.

Property provides so many different options if your goals or circumstances change. For example, you may decide to renovate, subdivide or even develop an existing property to townhouses or units  (if town planning allows.)  You can choose to hold the property for the long term for capital growth or even move into the property if your situation changes (and the rental agreement with your tenants permit it.)

Finally, owning property over other types of  investments means you are eligible for multiple tax benefits, including depreciation (especially significant for brand new property) and negative gearing, which allows you to write off any expenses related to the property to lower your end of year tax return.

It’s hard to believe how quickly this year has flown. Not only is it almost Christmas already, but the QLD State Government incentive of $10,000 for all buyers of new property is also about to finish.

It feels like just the other day, but in fact it was back in June, when we announced to our clients that the State Government made the decision to stimulate the residential building industry and local property market by offering all buyers of new homes a one-off short term grant of $10,000.

Together with the first home buyers grant and competitive negotiations with developers, Grow Consulting Group have been able to bring this up to a grand total of $35,000 savings for some property buyers.

Because the incentive applies to all property buyers, a very large number of Queenslanders have already taken advantage of it. These savvy investors were also attracted by the particular developments that qualify for the incentive – all being in growth areas within close proximity to the CBD.

We expect enquiries to continue flooding in, right up until the date the incentive finishes, on 31 January next year. Particularly now that interest rates have dropped for the first time in around two and a half years, buyers are starting to realise that if they are going to enter the property market, now is the time to do it.

But, if you are considering buying under the incentive, you need to do so immediately. We doubt the grant will be extended, so this effectively means all Queenslanders keen to buy a home under the grant should do so over this holiday period before it runs out.

While the purchase needs to be made before the deadline of 31 January 2012, it is not necessary that the home is actually built or completed before then.

For a comprehensive home building project, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting, whereas for homes and apartments bought off the plan, the building work must be completed by 31 July 2013.