Brand New Real Estate for Brisbane Property Speculators

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By Colin James


(Brisbane) Latest figures for property values in Brisbane City have home owners guffawing all the way to the bank, as the statistics show that property values are on trend to rise by 2.2 % every year.

Investment property guru Micki Holder says the projected unusual growth in Queensland property values is encouraging many of us to take a position in the property market,"There is a distinctive market for backers needing to buy quality houses that may serve as investment property. First time investors abound, however they have done their homework and there is an expectation 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 major factor that holds many potential real estate investors back, in particular there is uncertainty around maintenance and repairs costs,"Buying a rental property in a high demand area kind of guarantees low vacancy rates, however the potential for high mend costs on existing housing stock is the gigantic 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 off 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 chance 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 stunned 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 value. Holder says that having a spotlight on rental yield from house and land packages shifts the viewpoint away from capital gain.

An annual rental yield of 6 % 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, plenty of her clients opt to have a low debt ratio and live off the rental proceeds,"Generating retirement income from a brand new home is viewed as very lowrisk by our clients," claims Holder.




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