Property investment has long been considered a safe bet for people looking to wisely invest their excess cash. Most people know someone, or have read a book on an entrepreneur who managed to make his or her fortune by investing in real estate. It is from this aspiration to reap similar monetary rewards that many people continue to search eagerly for just the right properties to invest in. Unfortunately the economy is not quite what it used to be, and it has become increasingly difficult for investors to identify properties that will yield the desired results.

The most ideal situation for an investor is finding a property for sale that ensures a positive return on investment right from the start. Thankfully with the right amount of due diligence on the part of the investor, it is possible to find just such a property. Australian cities are faced with the same challenge of population increase as most other major cities around the world.  With this increased number of people, comes an increased need for housing and business premises. Despite the recent downturn in the world economy over the last few years, demand for housing is still ongoing. 

The property market has a wide variety of choices available but it is up to the investor to do the necessary research to identify those properties that will provide a positive, not negative, return. This means ensuring that at the end of the month, the investor has made money, not lost it. Naturally, identifying a property for sale that will yield positive returns is easier when the investor has more cash to put in rather than have to borrow. Not having to take into account loan instalments and interest rates really cuts back on the monthly expenditure and ensures a higher retention of the rent being collected.

For investors who do decide to utilize a loan to make their real estate investment, there is a much stronger need to crunch the numbers before committing oneself. It is vital to examine the rent income and tax breaks, versus the loan and tax expense to determine if the net return is positive or negative. While it is true that capital gains can be made in future that will provide a positive return on the investment and any negative returns, it is difficult to predict the future value of a property given the occasional volatility that takes place in the real estate market. 

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