Are Queenslanders making capital gains?
When you implement a property investment strategy, the endgame is of course to make money. You aren't buying a property in Queensland to see it fall in value and end up worse off than when you started! But while real estate general accrues in value over a lengthy period of time, those looking to buy a new property and perhaps resell in a few years need to be able to ride the waves of price increases and decreases, and do it smartly.
With this in mind, it's important to take a look at where people have been buying and re-selling property in Queensland at a profit. It can give you some ideas of where your capital gains could be found.
No pain, some gains
CoreLogic RP Data has released its Pain and Gain report, which details the percentage of sales in each area that were made at a loss or a profit. This effectively shows where people are making capital gains, so is well worth discussing.
The wider Brisbane area saw 10.5 per cent of sales come in at a loss in the last quarter of 2014, which is still much better than the same time a year before. This could mean prices are working more in favour of sellers, or that these vendors are working better in the market. Either way, it's promising for anyone looking to invest.
On top of this, the Brisbane Council area had even better results: Only 6.2 per cent of property sales saw the vendor losing money. That's heartening news, as it means 93.8 per cent of sellers are making a profit on the sale of their property!
It won't stop yet
These great conditions for investors could be why we are now seeing homebuyer confidence rise. Genworth's Homebuyer Confidence Index rose in the last six months, showing that Australians are feeling much better about taking out a home loan and using it to buy property. And to be frank, with prices still on the rise, why wouldn't they?
On top of this, the report showed that a whopping 66 per cent of people surveyed thought that now was a good time to buy a home.
While these conditions are great, remember that getting the right advice is a crucial element of making a good Queensland property investment. You have to spend money to make money in the real estate market, so make sure your funds don't go to waste. Talk to Think Money about your property investment prospects.