So you’ve saved a good sum of money and you want to start earning some real returns from it – not just the interest you can make from keeping it in the bank. Deciding what to invest your hard earned cash in can be really difficult. You have the option to turn to something a little left of centre but offering high returns if done correctly, by investing in art. Investing in stocks offers a comparable risk/gain investment. Or you can turn all of your money into a deposit, take out a home loan and put your cash into an investment in property. But why invest in property? Here are a few good reasons:

Low risk

Standard real estate is a reasonably safe bet when it comes to investing your money. While the economic situation of late, and lower levels of consumer confidence, may mean the real estate market is down, it certainly isn’t out. Lower prices now will almost certainly go back up if investors looking to sell can wait for the sale, and realistically it is incredibly rare for the actual value to go down over time – it just may not go up as quickly as you want it to.

Earn two ways

Real Estate also offers you the unique opportunity to earn in one of two ways – firstly by investing in a property that you will make a rental return from. Secondly, you can buy, move in for a short time to reduce costs, get a handy removal company to move you back out, then re-sell when the market becomes more lucrative. The latter, if done carefully and if you are well-informed, can be a quick turn-around, not to mention a big return! Rental return, on the other hand, provides a steady and consistent form of income, with most of your costs tax deductible.

Invest a little, make a lot

Another real benefit is just how much return you can make. If you are patient and can hold onto your investment property for even a decade, the amount it can increase in value is phenomenal, especially if the local area changes or develops in a positive way.

In addition, if you buy a property that is a bit of a ‘fixer upper’, and have the capital to invest in restoring it, you can turn a small purchase into a big return.  Or perhaps buy an empty block, install a nice kit home at a fraction of the price of a newly built home, and then sell at an increased price.

Forget houses

If houses are too long to turn around for you, why not forget about buildings and just concentrate on land. Many property investors look towards large and empty blocks as an excellent chance to make some quick money, but be warned, it can come at a slightly higher price. Investing in land, subdividing and selling as separate blocks to individual buyers can potentially make you an excellent return, just make sure you take into account the cost associated with the subdivision and all the council costs.