Australians are the richest people in the world according to Swiss Bank Credit Suisse.
In their fifth annual study they found that the average Australian Adult is worth more than US$258,000. The second wealthiest country being Belgium with an average worth of US$173,000.
Australia and Belgium were followed by Italian’s, French and the British.
Only six per cent of Australian’s have a wealth below US$10,000, while 70 percent of the world has an individual wealth of US$10,000.
This wealth is an accumulation of high housing prices in Australian and the number of properties Australian’s own. It also includes assets such as the number of cars we own.
In the last 14 years, Australia has had a rapid increase in wealth, which has resulted in us being the second richest population behind the Swiss. In the past year the average Australians wealth has grown by five percent.
However, if this doesn’t convince you to invest in property, here is why you should.
1. Property is less volatile than equities. Volatility can be extremely risky when you have borrowed money to begin your investment.
2. It improves your borrowing position for the future.
3. Property increases the overall economy. The government has a vested interest in the value of property rising. Hence why they offer first home buyer grants.
4. Property always increases, unlike a car where depreciation reduces the resell price. You will only lose money in the property market through poor management.
5. It's tangible, therefore you can touch it and maintain it, building a relationship.
In order to make the most of your investment, look for properties with renovation potential, located near shops and transport. Look for something unique whether that be an odd feature or a view. Purchase in areas which have displayed strong growth and buy the worst house in the best street.