The cycle of housing is hitting a high point
While real estate in Queensland has its ups and downs, it is important to remember that this is a cycle that swings and repeats. Even if prices go down at one point, the pendulum will swing back the other way, with those all-important capital gains slowly crawling upwards.
Watching these cycles is important for any property investment strategy, and new research has shown that two particular areas are experiencing an upswing in their cycle at the moment. This could bode well for those of you thinking about buying a a piece of investment real estate.
Home sales starting strong
The Housing Industry Association (HIA) has released its New Home Sales Report, which shows the volume of property that people are buying across the country. New homes are a great idea for investors as well, requiring minimal maintenance and serving as an attractive prospect for any potential tenant.
And according to the HIA, the level of new dwelling sales in Queensland rose by an incredible 9 per cent during the three months to February this year. That's some excellent strength for the local market, better than anywhere else in the country. It wasn't enough to offset declines in other states and territories, but it does position Queensland as a great place for the transaction of new real estate.
Building backs it up
With interest in new homes clearly looking very strong, the amount of new homes on the way looks set to continue rising as well. The Australian Bureau of Statistics revealed that in February, there was a 2.1 per cent rise in the volume of new homes approved for construction. This indicates that the flow of fresh homes is set to continue throughout the middle of 2015.
It's no one-off growth spurt either – the number of approved dwellings in our state has now been rising for five months in a row!
Make the most of it
As we mentioned earlier, housing comes in cycles – properties come and properties go. That means it's important to get the right wealth coaching and investment advice if you want to pursue a home to use as a rental property. Putting your money in the right place can yield great capital gains down the line, but just because there's a lot of property around doesn't mean you just buy any home that comes your way.
Talk to us at Think Money if you want the right guidance for making the most of the current climate.