Inflation

All posts tagged Inflation

Property smashes growth and return

It’s that lurking figure that underpins how much our money is really worth…good old inflation. It has a way of sneaking up year after year, making every dollar you have worth less when you come to buy something.

Keeping up with inflation is a tough gig…and for many investors it’s a juggling act trying to figure out how much your hard earned investments are earning and what that means in real terms.

The holy grail of investing is the magic combination of both growth and return. It sounds elusive, but when it comes to property, you’re tapping into both.

WIth the right property, in the right location, your capital growth is as close to a sure thing as you’ll find. And with most properties doubling in value every ten years or so, it’s a no-brainer for growth.

The added bonus is that returns are incredibly good, with rent now outpacing inflation. A recent report by the Tenants Union of NSW published in the Australian Financial Review shows that rents are actually smashing inflation.

According to the Rent Tracker, rents have shot past the inflation rate, rising 5 per cent in the year to September 2016. At the same time, the number of renters has also jumped by the same amount…more and more people competing to rent YOUR property!

There’s never been a better time to invest in property. Growth in capital is soaring, rents are outpacing inflation and the population is outpacing supply. WIN-WIN-WIN.

Keep chargin’

Mark Rolton