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New Homes for Brisbane Property Investments

By Colin James


(Brisbane) Latest figures for property values in Brisbane City have householders giggling all the way to the bank, as the statistics indicate that property values are on trend to extend by 2.2 per cent every year.

Investment property guru Micki Holder says that the projected remarkable growth in Queensland real estate values is inspiring many of us to take a position in the property market,"There is a definite market for investors needing to buy quality real estate that may serve as investment property. First time stockholders abound, however they have done their homework and there is an expectancy that rental yield will be positive, if not downright competitive. Investing in house and land packages is a highly attractive option. "

Holder announces that doubt is a major factor that holds many potential real estate investors back, in particular there is uncertainty around repairs and maintenance costs,"Buying a rental property in a serious demand area more or less guarantees low vacancy rates, however the capability for high repair costs on existing housing stock is the big unknown. "

"Making a capital gain is a driving factor for some financiers, who propose to retire off the proceeds of a rental property that they have paid down over a period of 20 years or so". Holder announces that good rental yield and capital gains do not always co-exist, however she explains that house and land packages address many of the danger factors presented by older housing stock,"Many of our clients come to us for confirmation that purchasing an investment property in a blue chip area of town is not a financially responsible thing to do. They are very shocked at this analysis, given the increases predicted in capital gain projected over the lifetime of the investment, say 20 years. "

Capital gains tax and the cost of maintaining an older property located in a blue chip area can make dreadful inroads into any increase in property worth. Holder says that having attention on rental yield from house and land packages shifts the perspective away from capital gain.

A yearly rental yield of 6 per cent is usual for the properties that Holder presents to her clients. Holder asserts that a 20 to 25 % deposit will be sufficient to get a foot in the door, with many properties being paid off during 20- 25 years. But Holder announces that with rental yields providing a competitive investment, many of her clients choose to have a low debt ratio and live off the rental proceeds,"Generating retirement income from a fresh home is viewed as extremely low risk by our clients," says Holder.




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