понеделник, 24 ноември 2014 г.

New Homes for Brisbane Property Investments

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 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 inciting many individuals to speculate in the property market,"There is a definite market for investors needing to buy quality homes that may serve as investment property. First time investors 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 hesitation is a big element that holds many potential property investors 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 potential for high fix costs on existing housing stock is the big unknown. "

"Making a capital gain is a driving factor for some investors, who intend to retire off the results 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 risk 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 the city is not a financially responsible action to take. They are awfully 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 serious inroads into any increase in property value. Holder says that having attention on rental yield from house and land packages shifts the point of view away from capital gain.

An annual rental yield of 6 % is common for the properties that Holder presents to her clients. Holder claims that a 20 to 25 per cent deposit will be adequate to get a foot in the door, with many properties being paid off during 20- 25 years. But Holder asserts 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 lowrisk by our clients," announces Holder.




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