(Brisbane) Latest figures for property values in Brisbane City have house owners giggling all the way to the bank, as the statistics prove that property values are on trend to increase by 2.2 per cent every year.
Investment property guru Micki Holder says the projected remarkable growth in Queensland property values is inciting many people to invest in the property market,"There is a distinct market for speculators wanting to buy quality real estate that will serve as investment property. First time speculators abound, however they have done their homework and there is an expectation that rental yield will be positive, if not downright competitive. Investing in house and land packages is a highly attractive option. "
Holder asserts that hesitation is a big factor that holds many potential property investors back, in particular there is concern around maintenance and repairs costs,"Buying a rental property in a heavy demand area kind of guarantees low vacancy rates, however the aptitude for high mend costs on existing housing stock is the gigantic unknown. "
"Making a capital gain is a driving factor for some backers, who intend to retire off the profits 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 lots 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 thing to do. They are extraordinarily 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 value. Holder announces that having a focus on rental yield from house and land packages shifts the perspective away from capital gain.
A yearly rental yield of 6 per cent is common for the properties that Holder presents to her clients. Holder says 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. Nevertheless Holder announces 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 new home is viewed as really low risk by our clients," says Holder.
Investment property guru Micki Holder says the projected remarkable growth in Queensland property values is inciting many people to invest in the property market,"There is a distinct market for speculators wanting to buy quality real estate that will serve as investment property. First time speculators abound, however they have done their homework and there is an expectation that rental yield will be positive, if not downright competitive. Investing in house and land packages is a highly attractive option. "
Holder asserts that hesitation is a big factor that holds many potential property investors back, in particular there is concern around maintenance and repairs costs,"Buying a rental property in a heavy demand area kind of guarantees low vacancy rates, however the aptitude for high mend costs on existing housing stock is the gigantic unknown. "
"Making a capital gain is a driving factor for some backers, who intend to retire off the profits 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 lots 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 thing to do. They are extraordinarily 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 value. Holder announces that having a focus on rental yield from house and land packages shifts the perspective away from capital gain.
A yearly rental yield of 6 per cent is common for the properties that Holder presents to her clients. Holder says 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. Nevertheless Holder announces 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 new home is viewed as really 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.
No comments:
Post a Comment