Thinking of investing in property in Brisbane? Have you already started looking at different properties but something is stopping you? You’re not alone, a lot of people get overwhelmed by the process and quit before they even begin. But it doesn’t have to be confusing – investing in property is relatively straightforward. Think of us as your guide, as a mortgage broker at i Lend Finance Solutions we can help you find the best loan to suit your specific needs for a specific property and ascertain the type of loan, terms and rates that you agree to. As finance specialists, we are also “in the know” and have valuable data on different locations and property developments which can help you avoid picking the wrong investment property.
WHY INVEST IN PROPERTY?
- You want to invest in something you can see and touch
- You’re looking for something less volatile to invest in than shares or other investments – property is less prone to short-term speculators than paper asset classes. Along with the relatively long amount of time it takes to liquidate a property asset – this reduces market volatility significantly.
- You’re looking for a supplementary income – you can earn rental income and benefit from capital growth (if your property increases in value over time). Not to mention, if you take out a loan to purchase an investment property, interest on the loan and most property expenses can be offset against rental income, for tax purposes.
WHERE IN BRISBANE SHOULD YOU BUY?
Where and what you buy will affect your return on investment so make sure to thoroughly investigate in property markets you are not familiar with. Here are some tips for investing in properties in Brisbane and in general:
- Look for areas with high growth expectations in the next few years – where there is potential for capital gains.
- Look for areas where rental income is high compared to the property value.
- Research recent sale prices to give you an idea of what you can expect to pay for property in the same area.
- Find out about the vacancy rates in the neighbourhoods a high vacancy rate may indicate a less desirable area which could make it harder to rent the property and more difficult to sell in the future.
- Research proposed changes in the suburb that could affect future prices such as planned developments or zoning changes that could affect the future value of a property e.g schools, shopping centres, new transport hubs etc. Be aware, just because there was boom last year doesn’t mean it will continue this year.
- Invest in properties with features that will appeal to as many people as possible, for example a second bathroom, a lock up garage or somewhere conveniently located near to schools or the beach.
SUBURBS TO WATCH
The Courier Mail (2016) suggests that this year, Banyo, Durack, Carina, Carina Heights, Coopers Plains, Corinda, Indooroopilly and Kenmore are the suburbs to take a closer look at, as all eight suburbs are ticking boxes for investors including strong signs of development, job creation, popularity on search engines, good rental yields and investment rates.
According to CoreLogic RP Data (2015) these are a couple of hotspots in Brisbane:
- St. Lucia – dominated by the main campus of University of Queensland, it’s just 4km from Brisbane CBD and offers great Brisbane river frontage. There is a growing supply of units, but this heavily influenced by price, with St. Lucia being one of the more expensive suburbs to invest in, in Brisbane.
- Morayfield – located 38km north of Brisbane CBD, families are attracted to this area because of the larger homes on offer – the suburb has a low vacancy rate for rentals. The family-friendly suburb is also close to several schools and amenities (such as a Homemaker Village), also the Bruce Highway, making it accessible to the Brisbane CBD.
FINANCING YOUR INVESTMENT PROPERTY
Finding a property to invest in is just part of the challenge. How will you know the yields? Is it really the right property to invest in? Next, you’ll need to compare home loan rates – will you go for a fixed rate loan or a variable rate loan? From whom? Let us at i Lend Finance Solutions help you by taking the leg work out of this so you can make a more informed decision.