(Brisbane) Latest figures for property values in Brisbane City have home owners laughing all the way to the bank, as the statistics indicate that property values are on trend to rise by 2.2 percent every year.
Investment property guru Micki Holder says the projected remarkable growth in Queensland real estate values is inciting many people to speculate in the property market,"There is a definite market for investors needing to buy quality homes which 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 doubt is a major factor that holds many potential property investors back, in particular there is concern around repairing and maintenance costs,"Buying a rental property in a heavy demand area more or less guarantees low vacancy rates, however the capability for high fix costs on existing housing stock is the gigantic unknown. "
"Making a capital gain is a driving factor for some investors, 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 says 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 course of action. 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 severe inroads into any increase in property price. Holder says that having a spotlight on rental yield from house and land packages shifts the viewpoint away from capital gain.
A yearly rental yield of 6 % is typical for the properties that Holder presents to her clients. Holder says that a 20 to 25 % 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 announces that with rental yields providing a competitive investment, lots 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 extremely lowrisk by our clients," announces Holder.
Investment property guru Micki Holder says the projected remarkable growth in Queensland real estate values is inciting many people to speculate in the property market,"There is a definite market for investors needing to buy quality homes which 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 doubt is a major factor that holds many potential property investors back, in particular there is concern around repairing and maintenance costs,"Buying a rental property in a heavy demand area more or less guarantees low vacancy rates, however the capability for high fix costs on existing housing stock is the gigantic unknown. "
"Making a capital gain is a driving factor for some investors, 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 says 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 course of action. 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 severe inroads into any increase in property price. Holder says that having a spotlight on rental yield from house and land packages shifts the viewpoint away from capital gain.
A yearly rental yield of 6 % is typical for the properties that Holder presents to her clients. Holder says that a 20 to 25 % 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 announces that with rental yields providing a competitive investment, lots 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 extremely lowrisk 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.
