How are new home approvals good for property investment?
One of the stronger trends in the national economy recently has been building construction. CommSec's last State of the States report commented that the level of new homes being green-lit was why the New South Wales economy was ranked top of the nation. As the resources boom settles into a steadier rhythm, housing construction can boost the economy in a lot of ways.
But how does it help when it comes to your Queensland investment property? Let's take a look at just how good it can be for your long term capital gains.
It gives you more of the spice of life
Simply put, more construction means more property for you to choose from. Whether you want to buy a new home in a potential mining growth area or to nestle in the Brisbane CBD, strong approvals numbers mean you have more on the market, and greater power of choice.
The Housing Industry Association (HIA) noted that in seasonally adjusted terms, housing approvals went up by 3.6 per cent in the Sunshine State in May this year - the third best performance in the country. This suggests that property investment in Queensland is a sound decision - and you'll be able to select from a wider range of real estate.
It boosts affordability
If you look at Sydney's meteoric price rises over the last few years, the general consensus is that this has occurred because of tight supply - not enough homes being put on the market. The HIA often releases statements calling for greater supply so that more people can afford homes, and the figures for Queensland suggest that investing in property here could be a fantastic option.
Even though growth in values isn't as strong as in NSW, remember that property investment is a long-term plan. Think about the tortoise and the hare - slow and steady wins the race! Getting an affordable investment property that slowly accrues capital gains over the long term is an excellent way to generate wealth for the future.
Supply is a fundamental key to a successful housing market, and those seasonally adjusted figures paint a pretty picture for your strategy to buy new homes in Queensland. If you are interested in how wealth coaching and development of investment strategies can help you prepare a significant level of financial security, make sure to get in touch with us at Think Money. We have years of experience helping people tailor ideal plans for their financial situation.