(Brisbane) Latest figures for property values in Brisbane City have householders guffawing all the way to the bank, as the statistics show that property values are on trend to increase by 2.2 % every year.
Investment property guru Micki Holder claims that the projected unusual growth in Queensland property values is inciting many of us to speculate in the property market,"There is a definite market for investors desiring 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 downright competitive. Investing in house and land packages is a highly attractive option. "
Holder announces that doubt is a big element that holds many potential real estate investors back, in particular there is uncertainty around maintenance and repairs costs,"Buying a rental property in a serious demand area more or less guarantees low vacancy rates, however the potential for high repair costs on existing housing stock is the big unknown. "
"Making a capital gain is a driving factor for some investors, who plan to retire off the profits of a rental property that they have paid off over a period of 20 years or so". Holder announces 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 town is not a financially responsible action to take. They are very shocked at this analysis, given the increases expected 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 severe inroads into any increase in property price. Holder says that having a focus on rental yield from house and land packages shifts the perspective away from capital gain.
A once a year rental yield of 6 percent is usual for the properties that Holder presents to her clients. Holder claims that a 20 to 25 percent deposit will be adequate to get a foot in the door, with many properties being paid off over the course of 20- 25 years. Nevertheless 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 extremely low-risk by our clients," announces Holder.
Investment property guru Micki Holder claims that the projected unusual growth in Queensland property values is inciting many of us to speculate in the property market,"There is a definite market for investors desiring 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 downright competitive. Investing in house and land packages is a highly attractive option. "
Holder announces that doubt is a big element that holds many potential real estate investors back, in particular there is uncertainty around maintenance and repairs costs,"Buying a rental property in a serious demand area more or less guarantees low vacancy rates, however the potential for high repair costs on existing housing stock is the big unknown. "
"Making a capital gain is a driving factor for some investors, who plan to retire off the profits of a rental property that they have paid off over a period of 20 years or so". Holder announces 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 town is not a financially responsible action to take. They are very shocked at this analysis, given the increases expected 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 severe inroads into any increase in property price. Holder says that having a focus on rental yield from house and land packages shifts the perspective away from capital gain.
A once a year rental yield of 6 percent is usual for the properties that Holder presents to her clients. Holder claims that a 20 to 25 percent deposit will be adequate to get a foot in the door, with many properties being paid off over the course of 20- 25 years. Nevertheless 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 extremely low-risk by our clients," announces Holder.
About the Author:
House and Land Solutions is a specialist 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, an absolutely licenced agent who has been concentrating on new construction for years. House and Land Solutions focus is to give customers cost-effective decisions when building a new home.
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