Homepage Purely Finance newsroom

Financial Planners in Perth: “Real Estate is the Best Platform for the Small Investor”

Announcement posted by Purely Finance 13 Nov 2015

Financial planners at Purely Finance in Perth reveal why more sole investors are successful with real estate than with other investment platforms.
Perth, WA, 13 November 2015 - Nick Aves, director of Purely Finance, a firm that provides mortgage brokers and financial planners for small investors in the Perth area, has long believed that the best way for the average small investor to eventually become a large investor is through real estate. Recently, he came across an ally in Chris Gray, CEO of Sydney buyer’s agent firm Empire and host of “Your Property Empire,” a TV show that appears on Sky News Business.

Mr Aves recently discussed Mr Gray’s philosophy on his company blog. Mr Aves cited the main reasons why Mr Gray believes that property is the best way for small investors to prosper.

Easy to Learn

While market research is necessary, the fundamentals of property investing are simple: buy homes in areas that are close to cities, amenities, entertainment, infrastructure, work and transport. Properties purchased using this criteria will usually outperform any common investment such as shares.

Leverages Time

Property is among the most passive of investments. While it can be a bit of work to research and purchase a property, a person who outsources property management spends only minimal time on a property after it has been purchased. Many investors are able to “retire” or quit their day jobs much earlier in life than they would have otherwise done.

Leverages Money

On an average, investors can put down 20% and control the value of the entire investment. For example, $200,000 can control a home worth $1 million and the equity it gains every year. During solid growth periods, this can be $70-$100,000 per year. Some markets occasionally grow as much as 20% in one year.

Safe and Stable Investment

Housing prices are stable compared to shares. With shares, one can literally “lose one’s shirt” in one day. Property doesn’t rise and fall nearly as fast as shares do. When property does go down, it usually goes back up within two years.

In addition, the Government and banking system are designed to protect homeowners and property investors. Banks would go bankrupt if everyone defaulted on their loans. Governments can topple if everyone loses their home. While this is a somewhat melodramatic way of stating the situation, governments and banks do have a vested interest in keeping the market safe and stable.

According to Mr Aves:

“We have long believed that real estate gives the small investor the best opportunity of any platform to amass a fortune and become a large investor. We have helped numerous investors in the Perth area make their dreams of a great lifestyle and early retirement come true through real estate investment and sound financial planning.”

Purely Finance is a firm of mortgage brokers and financial planners who help small investors in the Perth area maximise their income and secure their futures through real estate. They offer “one stop shopping” for small investors, helping them secure home loans, wealth protection products and providing them with sound financial planning. To learn more, call their Perth office on (08) 9453 8888 or visit their website: http://www.purelyfinance.com.au/.