Rental rewards for Queensland investors
Do you want to invest in Queensland property? Then there are two primary ways you can make money. The first is through capital gains, where the home or apartment you buy appreciates in value over time. This is practically guaranteed – by getting your foot in the door and your name on the dotted line, you are buying into something that might have ups and downs, but will ultimately be beneficial in the long term.
The other main way to make profit via investment is through positive cashflow, where the money you charge for rent pays for the mortgage – with a little left over for you. This isn't a setup that works for everyone, as others prefer to work their payments for tax benefits. But making money through rent is your priority, then there is some good news just in for you.
Returns riding high in the capital
CoreLogic RP Data has released its latest quarterly rental review, which breaks down how much is being charged for rental properties across the country. And for Brisbane, those returns are looking good. In the year leading to the March quarter of 2015, the median rent charged on a house rose by 2.5 per cent – more than double the rate for all capitals combined.
This means our capital is ahead of the pack when it comes to annual growth in rent – which means more money from your investment property. The same applies in other areas like the Sunshine Coast, where house rents went up 6.8 per cent in the same period!
Of course, charging more rent will not mean much if your home loan repayments skyrocket beyond that point. But looking at the CoreLogic RP Data monthly home value indices, Brisbane and Gold Coast home values rose 2.95 per cent in the 12 months to the end of March.
But remember – these are median levels. That means you can find a wealth of property either side of the margin, allowing you to configure an investment property setup that meets your financial goals. There is so much new property cropping up all the time that the opportunities sometimes seem endless.
So how do you find the right property? A great place to start is here at Think Money. We have years of experience teaching people how to turn real estate into profit, and are sure to find you a property investment strategy that fits your goals.