2 reasons investors might love the rest of 2015
We've talked at length about the ways in which Queensland investment property has been an enticing option for people looking to generate long-term wealth. For one thing, there is the forecast growth in Brisbane real estate. For another, there is the dazzlingly low interest rate environment.
But what about over the rest of the year? What goes down must come up at some point, and it remains to be seen when the Reserve Bank of Australia (RBA) will give a lift to the official cash rate. Despite this, we have already seen some lenders raise interest rates on investment home loans.
Even then, there's plenty of room for optimism. Here are some reasons we might have a fantastic spring and summer for property investment this year.
The Australian dollar needs to keep coming down
In a recent article, Head of Investment Strategy and Economics at AMP Shane Oliver noted that the Australian dollar needed to fall quite a lot to boost the economy. This is because our commodity prices are low, with resources not fetching the high prices they once did. It puts a drag on the economy, and the cash rate from the RBA is likely going to stay down because of this.
For those interested in property investment, it could mean interest rates will still remain relatively low. While not completely tied, interest rates have tended to follow where the cash rate goes in the last few years. So, stability is good!
Confidence is running high in our construction sectors
One of the most important factors that property investors want to keep an eye on is the construction sector. A good supply of real estate in the pipeline keeps affordability pressures low, but not necessarily at the cost of capital gains.
And according to Master Builders Australia's survey of industry conditions for the June quarter, Queensland is riding high. In fact, 37 per cent of people in the construction industry still feel like there is more growth to come.
Just remember: Following the construction buzz doesn't always lead to the biggest capital gains. There is no such thing as a one size fits all solution when it comes to property investment in Queensland, which is why it's important to get the right wealth coaching and professional advice before making a commitment.
It's especially true when the property prospects for the rest of the year show this much promise. You want to make sure you get great returns on your investment!