Archive for September, 2013

Is residential property the best investment?

Written by multiforte on . Posted in News

Many people love the idea of residential property as an investment. They like the tangibility of bricks and mortar, they often get excited by tax savings from negative gearing, and they are fuelled by stories of windfall financial gains from family and friends or the media.

The reality is that some people have historically done well by investing in residential property – which had its heyday in the 80s and 90s delivering average gross returns of more than 10% pa.

Did you know that residential property returns for the last 10 years (to 31 December 2012) were just 6.5% pa1? And with consideration for costs, less than 5% pa?