Brand New Real Estate for Brisbane Property Speculators

djamal-soft الأربعاء، 3 ديسمبر 2014
By Colin James


(Brisbane) Latest figures for property values in Brisbane City have house owners giggling all the way to the bank, as the statistics show that property values are on trend to extend by 2.2 percent every year.

Investment property guru Micki Holder claims that the projected unusual growth in Queensland real-estate values is inciting many of us to take a position in the property market,"There is a definite market for backers wanting to buy quality homes that may serve as investment property. First time speculators abound, however they have done their homework and there is an expectancy that rental yield will be positive, if not honest to goodness competitive. Investing in house and land packages is a highly attractive option. "

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

"Making a capital gain is a driving factor for some backers, who plan to retire off the profits of a rental property that they have cleared over a period of 20 years or so". Holder asserts that good rental yield and capital gains do not always co-exist, however she explains that house and land packages address plenty 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 action to take. They are very stunned at this analysis, given the increases anticipated 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 value. Holder says that having a spotlight on rental yield from house and land packages shifts the point of view away from capital gain.

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




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