Brand Spanking New Houses for Brisbane Property Investors

By Colin James


(Brisbane) Latest figures for property values in Brisbane City have home owners giggling all the way to the bank, as the statistics prove that property values are on trend to rise by 2.2 per cent every year.

Investment property guru Micki Holder claims that the projected remarkable growth in Queensland real-estate values is inspiring many people to speculate in the property market,"There is a definite market for backers desiring to buy quality homes that will serve as investment property. First time stockholders abound, however they have done their homework and there is an expectation that rental yield will be positive, if not honest to goodness competitive. Investing in house and land packages is a highly attractive option. "

Holder announces that hesitation is a major factor that holds many potential investors in real estate back, in particular there is uncertainty around repairs and maintenance costs,"Buying a rental property in a heavy demand area kind of guarantees low vacancy rates, however the potential for high mend costs on existing housing stock is the big 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 down 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 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 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 serious inroads into any increase in property price. Holder announces that having a focus on rental yield from house and land packages shifts the perspective away from capital gain.

An annual rental yield of 6 % is typical for the properties that Holder presents to her clients. Holder asserts that a 20 to 25 percent deposit will be enough to get a foot in the door, with many properties being paid off during the course of 20- 25 years. However , Holder asserts 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 fresh home is viewed as really low-risk by our clients," announces Holder.




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