What does all the real estate investment activity mean for you?
We've been seeing a lot of activity from investors in the market over the last few years. Cash rate stability has meant people can secure a steady home loan interest rate, which is excellent for putting a long-term property investment strategy into action. Conditions have been great, and the proof is in the pudding.
A recent post from the Corelogic RP Data blog showed that in December last year, the percentage of lending going to investors was just short of a new record, which was set all the way back in 2003. The value of investor borrowing now totals more than $12 billion, and is the highest amount ever.
Queensland was responsible for 13.1 per cent of that money changing hands, which places the Sunshine State as the third biggest for property investment. But what does all this activity mean for the market and your chances of getting great capital gains out of a property?
When he discussed the factors affecting the 2015 property market back in December last year, Cameron Kusher from RP Data said that if investor lending slowed down, there would be less transactions and so less capital growth.
However, the numbers show that lending to this group actually increased at the very end of last year. If this trend continues, then it stands to reason that the opposite impact would happen to prices, and they would keep on going up. This means capital gains for those who do own a property, and great news for your long term financial prospects.
Why buy Brisbane
In particular, Brisbane looks like a good place to buy a new investment property if that is your plan for 2015. A recent release from the Real Estate Institute of Queensland stated that property values in the capital rose by 7.6 per cent over last year, which is a very healthy profit margin.
Brisbane is also the best region for a quick sale, with the time it takes to sell a home going down significantly.
More investors can mean more competition for the property you want, but you can give yourself an edge by tailoring a great investment strategy with the help of a wealth coach. This can allow you to set up your finances nicely and make a comfortable investment in Queensland that makes the most of the gains presented.