(Brisbane) Latest figures for property values in Brisbane City have householders giggling all the way to the bank, as the statistics show that property values are on trend to extend by 2.2 % every year.
Investment property guru Micki Holder says the projected phenomenal growth in Queensland property values is encouraging many of us to invest in the property market,"There is a distinctive market for backers needing to buy quality real estate that may serve as investment property. First time investors abound, however they have done their homework and there is an probability 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 element that holds many potential property investors back, in particular there is concern around repairs and maintenance costs,"Buying a rental property in a heavy demand area nearly guarantees low vacancy rates, however the potential for high repair 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 profits of a rental property that they have paid off over a period of 20 years or so". Holder says that good rental yield and capital gains do not always co-exist, however she explains that house and land packages address lots 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 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 asserts that having a focus on rental yield from house and land packages shifts the point of view away from capital gain.
An annual rental yield of 6 per cent is usual for the properties that Holder presents to her clients. Holder claims that a 20 to 25 percent deposit will be sufficient to get a foot in the door, with many properties being paid off during 20- 25 years. However , Holder says that with rental yields providing a competitive investment, many of her clients decide to have a low debt ratio and live off the rental proceeds,"Generating retirement income from a brand new home is viewed as very low-risk by our clients," says Holder.
Investment property guru Micki Holder says the projected phenomenal growth in Queensland property values is encouraging many of us to invest in the property market,"There is a distinctive market for backers needing to buy quality real estate that may serve as investment property. First time investors abound, however they have done their homework and there is an probability 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 element that holds many potential property investors back, in particular there is concern around repairs and maintenance costs,"Buying a rental property in a heavy demand area nearly guarantees low vacancy rates, however the potential for high repair 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 profits of a rental property that they have paid off over a period of 20 years or so". Holder says that good rental yield and capital gains do not always co-exist, however she explains that house and land packages address lots 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 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 asserts that having a focus on rental yield from house and land packages shifts the point of view away from capital gain.
An annual rental yield of 6 per cent is usual for the properties that Holder presents to her clients. Holder claims that a 20 to 25 percent deposit will be sufficient to get a foot in the door, with many properties being paid off during 20- 25 years. However , Holder says that with rental yields providing a competitive investment, many of her clients decide to have a low debt ratio and live off the rental proceeds,"Generating retirement income from a brand new home is viewed as very low-risk by our clients," says Holder.
About the Author:
House and Land Solutions specializes in turn key home and land packages for both the investment market and also for the owner occupier. House and land solutions is a boutique business created by Micki Holder, a fully licenced agent who has been specialising in new construction for a few years. House and Land Solutions focus is to give clients affordable choices when building a new home.
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