Whilst you don’t have to be wealthy to invest, you do need to invest to become wealthy. The real question is WHAT to invest in, that you are most comfortable with.
Obviously there are many asset classes that we can invest in. However, property investment provides the most meaningful result for most investors. To illustrate this point – if you ever need to provide security to the bank for any reason, the most acceptable asset class, as well as the class with the highest loan-to-value ratio, would be real estate. Why? This is because real estate is the asset class with the least volatility.
Our society has a fundamental need for properties as homes (or shelter), but we don’t always need shares or precious metals to live! There are many locations in Australia where you can buy properties, and many do have good potential from time to time. However, if you are conservative and perhaps recognise yourself to have low tolerance for risks and volatility, we suggest you start your property investment in Melbourne. Not only is it the 2nd largest city in Australia, but it is also not greatly reliant on any single industry or employer (such as mining or tourism). We believe Melbourne investment property will be the easiest starting point for most investors.
Consider this: If you bought any decent properties 10-12 years ago, then regardless of the countless crises that followed – such as Global Financial Crisis, September 11, tsunamis, earthquakes and conflicts, the current value of that property you bought would have most likely doubled, or at least be worth substantially more now than what it costed.