Real Estate Investment for value growth
For the past 7 years or so, funds on bank deposit have earned reasonably steady interest income. But after a downward trend over the last few years things took a turn for the worse in 2019 when the reserve bank lowered the official cash rate, and then again in response to concerns over the Covid-19 virus.
If one was to leave enough money in the bank for immediate cash needs and then seek better returns elsewhere, what options are out there for the canny investor?
Shares in public companies, shares in private companies, commercial real estate, residential real estate, government bonds?
Whilst there is no doubt that share portfolios have performed well over the last few years, the recent impact of Covid-19 has highlighted the relative risks associated with such portfolios.
In the meantime, many individuals have generated significant wealth in the last few decade from value increases in land holdings, and this trend looks set to continue. We are seeing the “smart money” looking for investments in land as a way to achieve long term value growth.