A lot of Australians invest in property in order to create wealth. Property is usually the first investment people make before other assets or shares. Many young Australians are buying properties in the suburbs whilst choosing to rent and live in a more expensive and desirable areas. There is also a rise in those who choose to stay home a little longer.

Some are also investing in non-residential properties such as syndicates and trusts. Investing in Property though is more attractive to investors as it is a less less volatile investment than shares and  a safer way to create wealth. The value of property is more likely to stay the same for longer periods, while other assets are more volatile and more likely to decline in value.

Property investments also have the potential to create capital growth and rental income at the same time. They also offer tax advantages through negative gearing. It is important to note though that these investments have no guarantees. Property prices can likely decrease as well as demand for rental properties, it is also difficult to find tenants who will consistently pay on time and who will take care of your property.

Property investors must be aware of interest rate changes and the effect the changes in interest rates will have on their net return on their property if they wish to sell. Investors must also be confident that earnings from their property can match earnings had they invested in shares.

If you do not have the direct budget to buy a property, you can invest your money in managed funds that have a property focus. You can also invest in property syndicates or listed property trusts for industrial, commercial and residential properties.

More investors have had residential properties dominate direct their investment portfolio. However, direct property investments only count for ten percent of investment portfolios.