Brand Spanking New Houses for Brisbane Property Investors

By Colin James


(Brisbane) Latest figures for property values in Brisbane City have house owners guffawing 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 claims that the projected phenomenal growth in Queensland property values is inciting many people to take a position in the property market,"There is a definite market for investors wanting to buy quality homes which will serve as investment property. First time stockholders abound, however they have done their homework and there is an probability that rental yield will be positive, if not downright competitive. Investing in house and land packages is a highly attractive option. "

Holder asserts that uncertainty 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 serious demand area kind of 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 backers, who intend to retire off the proceeds 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 thing to do. They are extraordinarily shocked at this analysis, given the increases anticipated 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 worth. Holder asserts 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 percent is usual for the properties that Holder presents to her clients. Holder asserts that a 20 to 25 % deposit will be enough 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, 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," claims Holder.




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