It’s no secret that real estate can help you build wealth, but the question of “how to do it” remains a mystery for people with little knowledge about real estate investing.

Most property investors start by owning 1 or 2 properties. To understand real estate investing, you have to learn these basic concepts:

– Capital Growth

Capital growth is a property’s value increase due to changes in the real estate market. Unlike other assets like automobiles, furniture, or computers, real estate properties increase their value over time. This is caused by the demand and population growth in Australia. When land or housing is low, there is substantial demand, and values will increase.

– Cash Flow Income

This kind of investment is all about purchasing residential properties to collect a stream of cash from rent.

– Expense Ratio

Properties also come with expenses. These expenses are often from the maintenance of the property as well as insurance, pest control, taxes, repairs, and advertising. When investing, you must consider the expense ratio for each property you buy.

Reach your property goals with Mirren. Contact us for a complimentary consultation.