Property investment can be an excellent way to build wealth, but it comes with significant responsibilities and risks. To make smart choices when investing, it is essential that you clearly define why and for whom you’re investing – such as whether the focus should be positive cashflow or capital growth?
New builds make an excellent investment, and can offer several advantages over established homes. These advantages may include lower energy and maintenance costs, higher rental demand due to modern amenities, and tax deductions from depreciation schedules. It should also be noted that many developers offer incentives for buyers investing in these properties such as stamp duty savings and discounts on purchase price.
Finding the ideal property investment depends on your available budget and long-term goals, but the key to its success is selecting a location with strong rental yields and potential for capital growth. According to No1 Property Guide’s founder Darren Cini, doing your research in areas experiencing rapid population, employment opportunity growth, infrastructure improvement or amenity development could pay dividends over time.
Growth hotspots tend to be more cost-effective than established suburbs, offering more houses for sale at more reasonable prices and being close to public transport and jobs – as well as having better services and amenities such as parks, schools and shops from their council.
When investing in new build property investments Queensland, it’s essential that you ensure the building is free from structural defects or other issues. Contact the developer or request a warranty certificate from them directly; additionally consider what mortgage options might be available specifically tailored for property investors with different interest rates than homeowner mortgages.
Property investing at the bottom of a cycle is usually best, because prices often recover more rapidly when prices decline than when prices increase. To find investment properties priced below market value in Queensland, research local data and take advantage of online tools available for finding them.
Search properties at the start of their growth cycles by considering locations like the Gold Coast and Sunshine Coast that are experiencing rising popularity, like Dr. Richard Mardiasmo of Core Logic says these areas will experience “relatively higher capital gains over the coming decade” than other parts of Australia.
Or you could invest in new properties by purchasing vacant land and later building on it – something becoming increasingly popular in Queensland as property values surged recently. Before making the commitment, be sure to investigate whether the block of land is suitable for dwelling; for instance, sloped sites will need custom-built residences to work with gradient. Also factor in additional expenses related to drainage and landscaping when making this decision.